Stellantis Partners with LG Energy to Build New Battery Factory
Oct 18, 2021 By MarketDepth
Stellantis, multinational automaker, and battery maker LG Energy Solution announced Monday that they are partnering to manufacture battery cells and modules for North America. The deal, which must be approved by regulators before proceeding, is part of Stellantis’ plan to invest USD34.8 Billion in electrification and software through 2025 as a means to create EV options for every model it produces.
40 Gigawatt Capacity
According to the companies, they plan to open a new facility with a production capacity of 40 gigawatt hours per year. Though the facility’s location is still pending, the companies plan to break ground in the second quarter of 2022, with production anticipated to begin by 2024. The batteries produced will be distributed to stellantis plants within North America for electric vehicles.
“Today’s announcement is further proof that we are deploying our aggressive electrification road map and are following through on the commitments we made during our EV Day event in July.”Stellantis CEO Carlos Tavares
The company would like EVs to make up over 40% of its U.S. sales by 2030. Furthermore, according to CEO Carlos Tavares, the new facility will permit the automaker to reach a minimum of 260 gigawatt hours of capacity by 2030.
Competitors Leading the Charge
Meanwhile, Stellantis competitors General Motors and Ford have already begun to build their EV battery plants.