Stellantis is joining the other Big Three automakers in homegrown battery production.
This week, the company announced a preliminary memorandum of understanding with LG Energy to build battery cells for its upcoming electric vehicles in North America. While no financial details were disclosed with this specific deal, this tie-up represents a major $35 billion shift toward electric vehicles over the next decade.
Both firms said on Monday that the plant, when complete, would produce more than 40 gigawatt hours (GWh) worth of battery modules each year. By 2030, Stellantis aims to replace 40% of its total vehicle sales with electric cars and trucks. To date, the automaker said it would build three new battery plants — one in Europe and two in North America. One of those plants will be located in the United States, though details on an exact location have yet to materialize.
By 2025, Stellantis said it aims to build out manufacturing capacity for 130 GWh worth of battery modules globally. From there, that figure will increase to 260 GWh by 2030.
“Today’s announcement is further proof that we are deploying our aggressive electrification road map and are following through with our commitments we have made during our EV Day event in July,” said Stellantis CEO Carlos Tavares. Of the joint venture, LG Energy Solution President and CEO Jong-hyun Kim said, “LGES will position itself as a provider of battery solutions to our prospective customers in the region by utilizing our collective, unique technical skills and mass-producing capabilities.”