Stellantis and Samsung SDI announced that the two companies have entered into a memorandum of understanding to form a joint venture to produce battery cells and modules for North America. The announcement comes just a few days after Stellantis also announced that they would form a joint venture with LG Energy Solutions to build a new factory opening in the Q1 of 2024 and will have an annual production capacity of 40-gigawatt-hours.
The Stellantis and Samsung SDI joint venture would start in 2025 and would have a plant aiming to have an initial annual production capacity of 23 gigawatt-hours, with the ability to increase up to 40-gigawatt -hours in the future.
“With the forthcoming battery plants coming online, we will be well-positioned to compete and ultimately win in the North American electric vehicle market,” said Carlos Tavares, CEO of Stellantis. “Our strategy to work with highly recognized partners boosts the speed and agility needed to design and build safe, affordable, and sustainable vehicles that match exactly what our customers demand. I am thankful to all the teams working on this critical investment in our collective future.”
“It is an honor for us to build a battery joint venture with Stellantis who is accelerating its electrification strategy in this green energy era,” said Young-Hyun Jun, President and CEO of Samsung SDI. “With this battery joint venture, we will do our best to meet the high standards of our customers in the North American EV market leveraging Samsung SDI’s battery technology, high-quality products, and safety measures.”
Where LG Energy Solutions already has formed a partnership to provide batteries and components to Stellantis for the plug-in (PHEV) Chrysler Pacifica Hybrid, so too does which provide batteries and components for the Wrangler Unlimited 4xe and all-new Grand Cherokee 4xe.
During its EV Day 2021 Presentation, Stellantis stated it had a goal that more than 40% of its sales in the United States would be made up of some sort of electrification. With the two joint ventures, Stellantis has a strong footing to put itself forth on achieving that goal.
The new battery plants will fulfill the needs of Stellantis assembly plants throughout North America for the next generation of electric vehicles ranging from PHEVs to full battery-electric vehicles (BEV) under the Chrysler, Dodge, Jeep®, and Ram Trucks.
The location of the new facility is currently under review and further details will be shared at a later date.
The transaction is subject to agreement on definitive documentation and customary closing conditions, including regulatory approvals.