Stellantis and LG Energy Solution announced the signing of a letter of intent to launch a joint venture in North America to produce battery cells.
As part of the joint venture, the parties plan to construct a new battery manufacturing plant. This will help Stellantis meet its target of having electric vehicles account for more than 40% of its US sales by 2030. The battery plant is expected to start producing in the first quarter of 2024, with a capacity of 40 gigawatt-hours per year.
The electric car batteries produced in the new plant will be sent to Stellantis assembly sites in the United States, Canada, and Mexico, where they will be installed in next-generation electric cars. The Stellantis brands offer both plug-in hybrid cars and fully electric cars.
"Today's statement demonstrates that we are following through on our ambitious electrification path and honoring our pledges made on our EV Day in July," Stellantis CEO Carlos Tavares remarked. "We've identified the Stellantis portfolio's next 'Gigafactory,' which will enable us reach a total capacity of 260 gigawatt-hours by 2030." I'd want to express my heartfelt gratitude to everyone who worked on this important initiative. Together, we will lead the industry in efficiency and create electrified vehicles that pique people's interests.
"Forging a joint venture with Stellantis is a significant step forward in our long-standing collaboration," said LG Energy Solution President and CEO Jong-hyun Kim. "By using our collective, unique technological strengths and mass manufacturing capabilities, LGES will position itself as a battery solution supplier for our potential clients in the area."
Stellantis and LG Energy Solution started their collaboration in the field of electrified vehicles in 2014 when Stellantis (then Fiat Chrysler Automobiles) chose LG Energy Solution (then LG Chem) to provide the lithium-ion battery system and controls for the Chrysler Pacifica Deliver Hybrid, the industry's first electrified minivan. Both organizations seek to strengthen their collaboration and continue to use each other's capabilities.
By 2025, Stellantis intends to invest over 30 billion euros in electrification and software development. At the same time, the corporation aspires to maintain a 30 percent efficiency advantage over the industry in terms of overall investment and R&D spending as a percentage of sales.
The plant location is still being analyzed; further information will be released at a later date. The new battery manufacturing plant is set to open in the second quarter of 2022 with a groundbreaking ceremony.
Stellantis is led by a clear mission as one of the world's major automotive groups and mobility providers: to deliver freedom of movement through unmistakable, economical, and dependable solutions. The company's main strengths are its sustainable performance, its enormous experience, and the unique skills of its workers who work all over the world, in addition to its rich legacy and broad geographical presence. In the spirit of the visionaries who imbued their businesses with passion and a competitive attitude that appeals to workers and consumers alike, Stellantis pulls from its wide-ranging legendary portfolio. Stellantis aspires to be the best, not the biggest, in the world.
LG Energy Solution is a global leader in sophisticated lithium-ion batteries for electric vehicles (EVs), transportation and IT applications, as well as energy storage solutions (ESS). The company's rapid expansion towards the achievement of sustainable living continues, notwithstanding its 30 years of experience in sophisticated battery technology. LG Energy Solution is more devoted than ever to creating revolutionary technologies that bring the energy of the future one step closer, thanks to its extensive worldwide network covering the United States, Europe, Asia, and Australia.