Stellantis and LG Energy Solutions have announced that the two companies have entered into a memorandum of understanding to form a new joint venture to produce battery cells and modules for the North American market. The joint venture will establish a new battery manufacturing facility that will manufacturer batteries for the next generation of electrified Stellantis vehicles in North America.
The location of the new facility has yet to be announced, however, Stellantis says that the location is under review and will be shared at a later date. Both companies expect that the groundbreaking for the new facility will take place during Q2 of 2022.
The battery cells produced at the new facility will be distributed amongst the Stellantis assembly plants in the United States, Canada, and Mexico. It is predicted that the facility will start production in the Q1 of 2024 and will have an annual production capacity of 40-gigawatt-hours.
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.
“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,” said Carlos Tavares, CEO of Stellantis. “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. I want to warmly thank each person involved in this strategic project. Together, we will lead the industry with benchmark efficiencies and deliver electrified vehicles that ignite passion.”
“Establishing a joint venture with Stellantis will be a monumental milestone in our long-standing partnership,” said Jong-hyun Kim, President, and CEO of LG Energy Solution. “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 partnership between the two companies dates back to 2014 when LG Energy Solution (then LG Chem) was selected by Stellantis (then Fiat Chrysler Automobiles) to supply the lithium-ion battery pack system and controls for the Chrysler Pacifica Hybrid, the industry’s first electrified minivan.