Stellantis and LG Energy Solution (LGES) today announced the signing of a memorandum of understanding to form a joint venture to produce battery cells and modules for North America.
As part of the agreement, the joint venture will establish a new battery manufacturing facility that will help Stellantis to reach its goal of more than 40% of sales in the US being EVs by 2030. The plant is targeting an annual production capacity of 40GWh, and will begin production by the first quarter of 2024.
The batteries produced at the new facility will be supplied to assembly plants throughout the USA, Canada and Mexico for installation in next-generation Stellantis electric vehicles ranging from plug-in hybrids to full battery electric.
“With this, we have now determined the next gigafactory coming to the Stellantis portfolio to help us achieve a total minimum of 260GWh of capacity by 2030,” explained Carlos Tavares, CEO of Stellantis.
“Establishing a joint venture with Stellantis will be a monumental milestone in our long-standing partnership,” said Jong-hyun Kim, president and CEO of LGES. “LGES will position itself as a provider of battery solutions to our prospective customers in the region by utilizing our collective, unique technical skills and mass-producing capabilities.”
The new agreement is an extension of a partnership between the two companies in electrified vehicles that dates back to 2014 when LG Energy Solution was selected by FCA to supply the lithium-ion battery pack system and controls for the Chrysler Pacifica Hybrid.
