Chrysler, Dodge, Jeep, and Citroen parent Stellantis announced today plans a new joint venture with South Korean battery maker Samsung SDI, aiming to produce battery cells and modules for Stellantis electric vehicles in North America.
The deal marks the second large-scale battery announcement for Stellantis this week, following the launch of a joint venture with LG energy for the development of a large-scale battery manufacturing facility in North America to supply Stellantis’ electric vehicles in the U.S, Canada, and Mexico. The ventures form part of Stellantis’ global EV strategy, which includes plans to invest over €30 billion through 2025 in electrification and software development and to reach at least 260 GWh of capacity by 2030.
According to Stellantis, the location of the new facility targeted to begin production in 2025, is still under review. The planned initial capacity for the battery facility is 23-gigawatt hours annually, with the ability to increase to up to 40-gigawatt hours.
Carlos Tavares, CEO of Stellantis, said:
“With the forthcoming battery plants coming online, we will be well positioned to compete and ultimately win in the North American electric vehicle market. Our strategy to work with highly recognized partners boosts the speed and agility needed to design and build safe, affordable and sustainable vehicles that match exactly what our customers demand. I am thankful to all the teams working on this critical investment in our collective future.”
The announcements come as global automakers appear poised to dramatically increase investment into the U.S. and North American electric vehicle segment. Last month, Ford announced plans to invest billions in new EV and battery plants, and GM has committed to invest $35 billion in its EV and AV businesses through 2025. Earlier today, Toyota announced plans to invest over $3 billion to grow its EV battery capacity in the U.S.
In August, President Biden signed an executive order setting a new target for zero emissions vehicles – including battery electric, plug-in hybrid electric, and fuel cell electric – to make up half of new vehicle sales in the U.S. by 2030. Along with the executive order, GM, Ford and Stellantis issued a joint statement indicating a “shared aspiration” to raise U.S. electric vehicle sales to 40-50% of annual volumes by 2030.
Young-hyun Jun, President and CEO of Samsung SDI, said:
“It is an honor for us to build a battery joint venture with Stellantis who is accelerating its electrification strategy in this green energy era. With this battery joint venture, we will do our best to meet the high standards of our customers in the North American EV market leveraging Samsung SDI’s battery technology, high quality products and safety measures.”