Stellantis and LG Energy Solution to Partner on Lithium-Ion Battery Production
Automakers Stellantis and LG Energy Solution (LGES) announced they will create a joint venture aimed at producing lithium-ion batteries in North America.
The new battery plant will reportedly have an annual production capacity of 40-gigawatt hours and is set to commence production by the first quarter of 2024.
According to the companies, the move represents an important step toward electrification transformation in the U.S.
Image used courtesy of Stellantis and LGES.
Next-generation Battery Modules
From a legal standpoint, Stellantis and LG Energy Solution entered a memorandum of understanding, which is currently subject to agreement on definitive documentation and customary closing conditions.
“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,” commented Stellantis’ CEO Carlos Tavares.
In fact, the agreement describes a joint venture that will establish a new battery manufacturing plant supporting Stellantis' goal of achieving more than 40% of its sales in the U.S. from electrified vehicles (EVs) by 2030.
“With this, we have now determined the next ‘gigafactory’ coming to the Stellantis portfolio to help us achieve a total minimum of 260-gigawatt hours of capacity by 2030,” Tavares added.
The batteries produced at the new facility will then be sent to Stellantis’ assembly plants in the U.S., Mexico, and Canada, to be installed in various EVs, including both plug-in hybrids and full battery electric vehicles.
“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,” Stellantis’ CEO concluded.
An EV-focussed Partnership
The collaboration between Stellantis and LG Energy Solution first started in 2014 when LG Energy Solution was selected by Stellantis to supply the lithium-ion battery pack system and controls for the Chrysler Pacifica Hybrid.
With the new agreement, the companies intend to cement their commitment towards the development of EV components.
“Establishing a joint venture with Stellantis will be a monumental milestone in our long-standing partnership,” explained Jong-hyun Kim, President, and CEO of LG Energy Solution.
“LGES will position itself as a provider of battery solutions to our prospective customers in the region by utilizing our collective, unique technical skills and mass-producing capabilities,” Kim added.
For context, the partnership comes days after LGES revealed its support of a study focusing on considering the potential of silicon for high energy density batteries.
Stellantis, on the other hand, has recently seen Mercedes-Benz joining Automotive Cells Company (ACC), a separate joint venture between the company and TotalEnergies.
Moving forward, Stellantis said it intends to invest more than €30 billion in the next four years across electrification and related software development.
While the location of the new facility is still to be confirmed, Stellantis and LGES said the groundbreaking for the facility is scheduled to take place by June 2022.