LG Energy Solution to Build Battery Plant with Stellantis... 40GWh Annual Capacity Construction to Start Next Year

LG Energy Solution and Stellantis Sign MOU for Electric Vehicle Battery Joint Venture
Annual Capacity of 40GWh in North America... Production Targeted for 2024

[Asia Economy Reporter Choi Dae-yeol] LG Energy Solution announced on the 18th that it will establish a joint venture with Stellantis, the world's 4th largest automaker, to build a battery factory in the North American region. The factory to be built by the two companies will have an annual production capacity of 40GWh and will manufacture battery cells and modules for electric vehicles.

The factory site is under final review, with plans to begin construction in the second quarter of next year and start production in the first quarter of 2024. The batteries produced here will be supplied to Stellantis' plants in the United States, Canada, and Mexico, and will be used in next-generation electric vehicles under Stellantis' brands, according to LG. Stellantis was formed in January this year through the merger of Italian-American automaker Fiat Chrysler Automobiles (FCA) and French automaker Peugeot Citro?n (PSA), and has previously announced plans to invest 41 trillion won (30 billion euros) by 2025 in electric vehicle transition.

Kim Jong-hyun, President of LG Energy Solution, said, "The establishment of the joint venture with Stellantis is another monumental milestone in the long-standing cooperative relationship between the two companies," adding, "We will firmly establish ourselves as the leading battery solution provider delivering the best value to customers in the North American electric vehicle market." Carlos Tavares, CEO of Stellantis, said, "We will lead the industry with electric vehicles that embody new standards of efficiency and passion."

With the establishment of this joint venture, Stellantis will be able to secure competitive batteries stably as part of its electrification strategy. As the adoption of electric vehicles rapidly increases, it has been forecasted that battery supply will be challenging in North America and Europe for the coming years. For LG Energy Solution, which is building a joint factory with General Motors (GM) in the United States, this once again proves its differentiated technological capabilities and mass production capacity.