Samsung SDI Establishes 40GWh Joint Venture with US Stellantis

Starting with 23 GWh Scale in Yeonsan... Expanding to 40 GWh
Samsung SDI Overcomes USMCA Barriers and Enters US Market
Stellantis Aims for 40% North American EV Sales

[Asia Economy Reporter Hwang Yoon-joo] Samsung SDI is partnering with Stellantis to establish its first electric vehicle battery cell and module production corporation in the United States.

Samsung SDI announced on the 22nd that the two companies recently signed a memorandum of understanding (MOU) to establish a joint venture (JV) for electric vehicle battery production.

The joint venture plans to begin producing electric vehicle battery cells and modules in the U.S. from the first half of 2025 with an initial annual capacity of 23GWh, which can be expanded to 40GWh in the future.

Through this joint venture, Samsung SDI will be able to smoothly carry out electric vehicle battery cell and module production in the U.S. ahead of the scheduled enforcement of the USMCA (United States-Mexico-Canada Agreement) in July 2025, while Stellantis will secure production capacity to achieve its goal of 40% electric vehicle sales in the North American region by 2030.

The name and location of the joint venture have not been specifically decided, but the batteries produced by the joint venture will be supplied to Stellantis factories in the U.S., Canada, and Mexico, and will be installed in next-generation electric vehicles under Stellantis brands, ranging from plug-in hybrid vehicles (PHEV) to pure electric vehicles (EV).

Since Samsung SDI had already been supplying electric vehicle batteries for vehicles such as Fiat's '500e' and Jeep's 'Wrangler 4xe' prior to signing this MOU, the establishment of this joint venture is expected to further strengthen cooperation between Samsung SDI and Stellantis.

With the establishment of this joint venture, Samsung SDI's electric vehicle battery production bases will expand to a total of four locations, including Ulsan in Korea, Hungary, and Xi'an in China.

Younghyun Jeon, President of Samsung SDI, stated, "Through the joint venture, we will strive to provide the highest satisfaction to customers in the North American electric vehicle market based on Samsung SDI's battery technology, quality, and safety."

Carlos Tavares, CEO of Stellantis, said, "Through the new battery joint venture, we will solidify our position in the North American electric vehicle market and win the competition. Stellantis' strategy is to collaborate with excellent partners to design and develop safe, eco-friendly, and reasonably priced vehicles that meet customer needs."