Stellantis, Samsung SDI to Form North American EV Battery VentureBy Antonio Gozain | Tue, 10/19/2021 - 16:09
A day after the joint venture between Stellantis and LG Energy Solution was officially announced, Reuters reported that the fourth largest automaker and South Korean storage battery manufacturer Samsung SDI have reached an agreement to jointly produce electric vehicle (EV) batteries to supply the North American market.
"The two companies (Stellantis and Samsung SDI) have struck a memorandum of understanding to produce EV batteries for North America," an anonymous source told Reuters.
Samsung SDI, an affiliate of tech giant Samsung Electronics, entered the EV battery business in May 2015, after acquiring 100 percent stake of Magna Steyr Battery Systems, the battery part affiliate company of Magna Steyr. Since the acquisition, Samsung SDI built a complete business system of the EV batteries, “spanning from cells and modules to battery packs,” reads its website. Samsung SDI has EV battery plants already operating in South Korea, China and Hungary, which supply customers such as BMW, Ford and Volvo.
The location of the battery joint venture is still under review, according to the report. Earlier in 2021, several media outlets reported Samsung SDI’s plans to build a battery plant in the US, where it already has sales facilities in San Jose, California, and Auburn Hills, Michigan. The exact location is yet to be announced but the National Public Radio from Illinois State University reported back in August that Normal, Illinois, could be the chosen town.
While Stellantis and Samsung SDI have not yet commented about their joint venture, South Korea’s news agency Yonhap also reported the two companies’ plan to build an EV battery plant in the US to supply the North American market, citing industry sources.
Ten months after the creation of Stellantis from the merger between FCA and PSA Groupe, the fourth largest automaker continues to take steps toward the decarbonized economy it promised back in January. On Monday, Oct. 18, Stellantis announced its joint venture with LG Energy Solution to produce lithium-ion batteries in North America as part of its €30 billion (US$35 billion) investment in electrification and software throughout 2025. “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. 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,” said Carlos Tavares, CEO of Stellantis.
The batteries produced at the new facility will be supplied to Stellantis assembly plants throughout the US, Canada, and Mexico for installation in next-generation electric vehicles ranging from plug-in hybrids to full battery electric vehicles that will be sold under the Stellantis family of brands, said Stellantis in press release.