Stellantis, LG Energy to Form Joint Venture for Battery Assembly in North America
AMSTERDAM—Stellantis and LG Energy Solution are forming a joint venture to assemble battery cells and modules for North America.
The joint venture will establish a new battery manufacturing facility that will help power Stellantis’ goal of realizing more than 40 percent of its sales in the U.S. comprised of electrified vehicles by 2030. Targeted to start by the first quarter of 2024, the plant aims to have an annual production capacity of 40 gigawatt hours.
The batteries produced at the new facility will be supplied to Stellantis assembly plants throughout the U.S., Canada and Mexico for installation in electric vehicles ranging from plug-in hybrids to full battery electric vehicles that will be sold under the Stellantis family of brands.
The factory will “help us achieve a total minimum of 260 gigawatt-hours of capacity by 2030,” says Carlos Tavares, CEO of Stellantis.
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.
Stellantis plans to invest more than $34.9 billion through 2025 in electrification and software development.
The location of the new facility is currently under review and further details will be shared at a later date. The groundbreaking for the facility is expected to take place in the second quarter of 2022.
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