Stellantis, Samsung SDI JV for NA Battery Manufacturing

A lot of blue sky ?

Stellantis N.V. (NYSE / MTA / Euronext Paris: STLA) and Samsung SDI* today announced that their companies have entered into a memorandum of understanding to form a joint venture to produce battery cells and modules for North America. Targeted to start in 2025, the plant aims to have an initial annual production capacity of 23 gigawatt hours, with the ability to increase up to 40 gigawatt hours in the future.

The latest Joint Venture for Lithium-Ion Battery Production in North America comes just days after Stellantis announced that it had entered with LG Energy Solution a memorandum of understanding to form a joint venture to produce battery cells and modules for North America. Thus the battery gold rush among major automakers continues with vast unknowns on how EVs will pan out among consumers. (Stellantis, LG Energy JV for North American BatteryProduction;Toyota to Spend $3.4B for US Battery Manufacturing)

The cells and modules 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.

“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,” Tavares claimed.

Stellantis says it will invest more than €30 billion through 2025 in electrification and software development, while targeting to continue to be 30% more efficient than the industry with respect to total Capex and R&D spend versus revenues.

The location of the new facility is currently under review and further details will be shared at a later date. The transaction is subject to agreement on definitive documentation and customary closing conditions, including regulatory approvals.

*Samsung SDI is a manufacturer of rechargeable batteries for the IT industry, automobiles, and energy storage systems