LG Energy Solution & Stellantis Team Up To Build EV Battery-Making Facility in NA
Dutch automaker Stellantis and LG Energy Solution (LGES) will be working together to build a new electric vehicle (EV) battery manufacturing facility in North America.
Both companies recently announced that they agreed to form a joint venture to help Stellantis realise its goal of having 40% of its sales in the U.S. be made up of EV sales by 2030.
The EV battery manufacturing plant that would come out of the joint venture would have an annual production capacity of 40-gigawatt hours to produce EV battery cells and modules for the various Stellantis assembly plants throughout the U.S., Canada and Mexico. These components would then be installed in next-generation EVs, from hybrids to full battery EVs, under Stellantis's family of brands.
Although both companies did not disclose the plant's location, Tech Crunch reported that the plant's site is currently under review and would be announced at a later date. However, both companies did say that the plant is expected to start manufacturing battery cells and modules by 2024.
Carlos Tavares, Stellantis's CEO, said that the joint venture is further proof that the company is deploying its "aggressive" electrification road map and following through on its commitments during the EV day event in July 2021.
"I want to warmly thank each person involved in this strategic project. Together, we will lead the industry with benchmark efficiencies and deliver electrified vehicles that ignite passion," Tavares added.
LGES President and CEO Jong-hyun Kim said that the joint venture with Stellantis is a "monumental milestone" in the companies' long-standing partnership. He also added that LGES would put itself as a battery solutions provider to its customers by using their technical skills and mass-producing capabilities to its prospective customers.
LGES and Stellantis's partnership dates back to 2014 when Stellantis chose LGES, known as LG Chem back then, to supply lithium-ion battery pack systems and controls for the Chrysler Pacifica Hybrid - the industry's first electrified minivan.
Regulators are still looking over the joint venture for approval as of the publication of this article.
The joint venture between Stellantis and LGES came on the same day Toyota announced that it would be investing US$3.4 billion in automotive batteries in the United States through 2030 and building an automotive battery plant in the U.S., which will start production in 2025.
Written by John Paul Joaquin