Stellantis advanced its electrification plans, finalizing a deal with Samsung SDI to create a new joint venture to build batteries for North America. Expected to begin in 2025, the JV is expected to produce 23 gWh, expanding to 40 gWh eventually.
It’s unclear where production will take place, but media reports from South Korea suggest it will be in the U.S. The deal comes on the heels of yesterday’s official announcement of plans to create a U.S.-based joint venture with LG Energy, which also produces batteries for General Motors and Hyundai.
“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.”
Electrification plans
Stellantis is now well advanced in the process of securing annual production capacity for electric vehicle batteries, paving the way to achieving 40% of its sales in the U.S. comprised of electrified vehicles by 2030.
The battery plants will fulfill the needs of Stellantis assembly plants throughout the U.S., Canada, and Mexico for installation in next-generation electric vehicles ranging from plug-in hybrids to full battery electric vehicles that will be sold under the Stellantis family of brands.
Focus on North America
Stellantis revealed in July it plans to spend $35 billion on the development and production of battery-electric vehicles. CEO Carlos Tavares has since suggested that dollar figure will rise in the near future. He also said at the time, battery production is critical to meet the needs of the 55 plug-in hybrids and BEVs coming.
“Today, we talking about five gigafactories,” Tavares said during a virtual roundtable with members of the Automotive Press Association July 21. “Perhaps, in a few months we will be talking about more.”
The plan — at the time — called for two in North America, three more in Europe. It appears the two in North America are ready to happen. In fact, the first plant with LG Energy is expected to begin production in the first quarter of 2024, the company said. At full capacity, it will produce 40 gigawatt hours.
“Today’s announcement is further proof that we are deploying our aggressive electrification road map and are following through on the commitments we made during our EV Day event in July,” Tavares said in a statement.
“With this, we have now determined the next ‘gigafactory’ coming to the Stellantis portfolio to help us achieve a total minimum of 260 gigawatt hours of capacity by 2030.”