Stellantis (NYSE / MTA / Euronext Paris: STLA) and LG Energy Solution today announced that they have entered into a memorandum of understanding to form a joint venture to produce battery cells and modules for North America. The JV will establish a new battery manufacturing facility supporting Stellantis’ goal of realizing more than 40% of its sales in the U.S. comprised of electrified vehicles by 2030. Production is scheduled to start by the first quarter of 2024. Annual production capacity of 40 gigawatt hours is predicted.
The batteries produced at the new facility will be supplied to Stellantis assembly plants throughout the US, 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. Stellantis was created by the merger of Fiat Chrysler, aka FCA, and Peugeot or PSA.
“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,” claimed Carlos Tavares, CEO of Stellantis. “With this, we have now determined the next ‘giga-factory’ coming to the Stellantis portfolio to help us achieve a total minimum of 260 gigawatt hours of capacity by 2030.
The partnership between the two companies in electrified vehicles 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.
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