Video source: YouTube, Arirang News
Automaker Stellantis NV (STLA) has formed a joint venture with South Korean battery maker Samsung SDI to produce electric vehicle batteries for its North American auto assembly plants.
On Friday, Stellantis, which counts Jeep, Dodge, Ram and Chrysler among its brands, said it is reviewing locations for a future lithium-ion battery plant and aims to begin operating by the first half of 2025. The new facility will have an initial annual production capacity of 23 gigawatt hours with the ability to increase up to 40 gigawatt hours in the future, the companies said.
Financial details of the deal were not disclosed.
Stellantis announced in July that it will invest at least $35.5 billion by the end of 2025 to expand its lineup of electric vehicles. By 2030, the world’s fourth-largest automaker anticipates that more than 70% of its sales in Europe and over 40% of its US sales will be all-electric or plug-in hybrid vehicles.
In a statement Friday, Stellantis chief executive officer Carlos Tavares said, “With the forthcoming battery plants coming online, we will be well positioned to compete and ultimately win in the North American electric vehicle market.”
“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,” Tavares said.
Earlier this year, Samsung SDI was reported to be looking to expand its battery cell manufacturing capabilities in the US, but was unsure if it wanted to launch a plant as a joint venture or as an independent manufacturing site.
Confidential sources told Reuters that Samsung SDI was in talks with Stellantis and Ford-backed EV startup Rivian about supplying them with batteries produced at a potential new US plant.
The battery maker already operates sites in South Korea, China and Hungary, which supply companies like Ford, Volvo Group, Volkswagen and BMW.
On Friday, Samsung SDI president and chief executive officer Young-hyun Jun said, “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.”
“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,” he stated.
The tie-up comes less than a week after the automaker announced a battery joint venture agreement with Samsung’s rival LG Energy Solution to produce 40 gigawatt hours of batteries a year.
Between the two newly-announced joint ventures, Stellantis has secured an annual battery production of up to 80 gigawatt hours, which could power about 1.2 million EVs.
Source: Equities News