Stellantis Just Can’t Stop Planning Battery Factories In the US
Fresh off announcing a partnership with LG, Stellantis is also teaming up with Samsung to build another battery plant.
Ah, Stellantis, the brand megagroup that keeps on giving. Not only did it announce four days ago that it's partnering with LG to make loads of electric vehicle batteries in the U.S., but now the multifaceted Peugeot-Fiat-Chrysler chimera has said it will also be working with Samsung to deliver even more gigawattage from planned U.S. facilities.
The LG plant, which is yet to find a location or break ground, is set to start production in the first quarter of 2024. This Samsung-partnered factory will be just slightly behind, with an aim of 2025 to kick off making batteries there. A specific location hasn't been announced, and presumably won't be for a bit. But when it's running, the Samsung site will have an initial annual output of 23 gigawatt hours of juicy, juicy batteries and then scale up to 40 gigawatt hours, the same as the LG factory. That, Stellantis CEO Carlos Tavares says, is what will allow it to "win" North America from its competitors.
“With the forthcoming battery plants coming online, we will be well positioned to compete and ultimately win in the North American electric vehicle market,” said Tavares, explaining that the group's decision to work with battery partners like LG and Samsung was part of how they planned to scale production rapidly.
“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.”
Some other automakers have loudly announced how much they're investing in battery facilities—like Toyota's $3.4 billion cash injection into US-based electrification, with $1.29 billion specifically for upcoming battery production. Stellantis hasn't actually said how much it's spending and hasn't promised how many jobs will be created by the two facilities, although both releases have suggested it's building completely new factories and not piggybacking off any existing LG and Samsung works.
From Samsung's side, Young-hyun Jun, president and CEO 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.”
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