Stellantis join forces with LG Energy to establish EV battery joint venture

Stellantis join forces with LG Energy to establish EV battery joint venture

Automobile giant Stellantis has announced the signing of a partnership deal with South Korean battery producer LG Energy Solution to form a joint venture (JV) to produce battery cells and modules for the North American markets.

The global automotive giant and the South Korean battery producer have already signed a memorandum of understanding (MoU) to set a new, massive battery manufacturing plant. However, none of the two sides revealed where the battery manufacturing plant will be located. According to the companies’ joint statement, the location of the manufacturing plant is yet to be determined, but the groundbreaking for the planned facility will likely take place sometime in or around the second quarter of next year (2022).

If everything goes on as smoothly as planned, the new battery factory should be up and running by the first or second quarter of 2024. The two partners have a goal for the factory to gain a production capacity of 40 gigawatt hours (GWh) per annum.

Announcing the signing of the MoU, Stellantis CEO Carlos Tavares said, “Today’s announcement is further proof that we are deploying our aggressive electrification road map. With this, we have now determined the next ‘gigafactory’ coming to the Stellantis portfolio to help us achieve a total minimum of 260 GWh of capacity by 2030.”

Stellantis came into existence with the merger of Fiat Chrysler and the PSA Group. It is the world’s sixth-biggest automaker, involved in designing, developing, manufacturing and selling cars through more than a dozen brands. The long list of its brands includes Alfa Romeo, Chrysler, Citroën, Dodge, DS, Fiat, Fiat Professional, Jeep, Maserati, Opel, Peugeot, Ram, and Vauxhall.

The batteries to be produce by the upcoming JV will be supplied to Stellantis assembly plants throughout North America, which includes the United States, Canada, and Mexico. The batteries will power the company’s next-generation EVs.

It is not the first time that the two companies have decided to work together in field of electrification of vehicles as they have been collaborating since the year of 2014, when Stellantis (then Fiat Chrysler Automobiles) selected LG Energy Solution (then LG Chem) as its battery partner. At the time, the South Korean company was selected by the automobile giant to supply lithium-ion battery packs and related components for the Chrysler Pacifica Hybrid, which was the only plug-in hybrid minivan in the United States.