Stellantis and South Korean battery maker Samsung SDI have revealed their plans to collaborate on a second joint-venture plant in the United States. The primary goal of this partnership is to manufacture electric vehicle (EV) batteries, with production set to commence in 2027.
While the deal is yet to be finalized, the exact location of the plant remains under review. Details concerning the total investment at the site and the number of employees it will hire will be disclosed at a later stage. Initially, the plant will have a production capacity of 34 gigawatt hours (GWh).
See also: Stellantis need four electric vehicle battery plants in North America by 2030
Stellantis CEO Carlos Tavares expressed his enthusiasm for the new facility, stating, “This new facility will contribute to reaching our aggressive target to offer at least 25 new battery electric vehicles for the North American market by the end of the decade.”
Stellantis, known for brands such as Peugeot, Jeep, Ram, Alfa Romeo, Citroen, and Opel, has previously announced its ambitions to achieve 100% electric passenger car sales in Europe and a 50% electric mix for cars and light trucks in the U.S. by 2030. In pursuit of this objective, the company aims to secure around 400 GWh of battery capacity.
To support their global EV production and software endeavors, Stellantis committed to investing $35 billion through 2025. The upcoming U.S. battery plant will be the sixth to bolster the company’s sustainability objectives.
See also: GM and Samsung SDI Announce $3 Billion Investment in Joint Battery Cell Factory in the US
Samsung SDI CEO Yoon-ho Choi expressed confidence in the partnership, stating, “The second plant will accelerate our market penetration into the U.S.”
This collaboration between Stellantis and Samsung SDI is not their first. In May 2022, they jointly announced an investment of over $2.5 billion to establish their inaugural battery plant, scheduled to begin operations in the first quarter of 2025 in Kokomo, Indiana. The initial capacity of that plant is projected to be 23 GWh, with future expansion plans up to 33 GWh.
Furthermore, Stellantis is simultaneously working with South Korea’s LG Energy Solution (373220.KS) on a joint-venture battery plant in Windsor, Ontario, Canada. Set to open in 2024, this facility will create 2,500 jobs and have an annual production capacity exceeding 45 GWh.
Adding to the impressive list of collaborations in the EV battery industry, in April, Samsung SDI and General Motors (GM.N) announced their joint venture, planning to invest over $3 billion in a U.S. battery plant. Expected to commence operations in 2026, this plant will boast an annual capacity of 30 GWh and be situated in Indiana, employing approximately 1,700 people.
See also: Samsung SDI Opens Battery R&D Center in China to Boost Technological Competitiveness
The United Auto Workers union, currently in negotiations with Stellantis for a new labor agreement covering the automaker’s U.S. hourly workers, is advocating for union representation and higher wages for employees at these joint-venture plants, including those built by GM, Stellantis, and Ford Motor (F.N).
After the announcement of the second U.S. joint-venture plant, Samsung SDI shares experienced significant gains, rising up to 4.1% compared to the benchmark KOSPI’s (.KS11) modest increase of 0.8%.
