Accelerating its electric investments, Stellantis took a giant step towards establishing a lithium-ion battery facility in North America with the partnership of LG Energy Solutions. With an investment plan of more than 30 billion Euros, the new battery plant, which is planned to be operational in the first quarter of 2024, will have an annual production capacity of 40 gigawatt hours.
Stellantis N.V. (NYSE / MTA / Euronext Paris: STLA) and LG Energy Solution to form a joint venture
announced a memorandum of understanding.
Automotive manufacturer group Stellantis, which provides mobility and innovation solutions, continues to sign new agreements with the target of more than 40 percent of US sales by electric vehicles by 2030. Stellantis and LG Energy Solutions plan to establish a new battery manufacturing facility, with the goal of strengthening the group’s future mobility ambitions. The facility, which is targeted to be commissioned in the first quarter of 2024, will have an annual production capacity of 40 gigawatt hours.
Electric roadmap
Emphasizing that this announcement is proof that the group is implementing an aggressive electrification roadmap and fulfilling the promises made at the ‘Electric Vehicle Day’ event in July, Stellantis CEO Carlos Tavares said: “It will be added to the Stellantis portfolio to help us reach a minimum capacity of 260 gigawatt-hours by 2030. we have determined the next ‘giga factory’. I would like to sincerely thank everyone involved in this strategic project. Together, we will offer electric vehicles that set the standards in efficiency, lead the industry and inspire excitement.”
Sharing his views on the joint investment, Jong-hyun Kim, President and CEO of LG Energy Solution, said, “Establishing a joint venture with Stellantis will be an important milestone in our long-standing partnership. “As LGES, we will position ourselves as a provider of battery solutions to our potential customers in the region, using our unique technical skills and mass production capacity.”
The electric vehicle partnership between the two companies dates back to 2014 when Stellantis (later Fiat Chrysler Automobiles) selected LG Energy Solution (later LG Chem) to provide the lithium-ion battery and control systems for the industry’s first electric van, the Chrysler Pacifica Hybrid. . With this announcement, the two companies will continue to further solidify their partnership and leverage each other’s strengths.