Automaker Stellantis NV and battery manufacturer LG Energy Solution have entered a memorandum of understanding (MoU) to build a 40GWh battery plant in North America.
The companies expect to break ground in Q2 of next year and the plant is expected to start production by Q1 of 2024.
Netherland’s based automaker Stellantis has also entered into a MoU to form a joint venture with South Korea’s Samsung SDI for a battery plant to initially produce 23GWh, potentially rising to 40GWh.
Unlike LG, Samsung does not already have a battery plant in North America.
The battery cells and modules produced at the facilities are intended to supply Stellantis’ assembly plants in US, Canada and Mexico.
They will be installed in a range of EVs, including hybrid plug-in and full electric vehicles that will be sold under the Stellantis brand family, which include Peugeot, Fiat, Opel, Jeep and Ram.
Carlos Tavares, CEO of Stellantis, said: “Our strategy to work with highly recognised partners boosts the speed and agility needed to design and build safe, affordable and sustainable vehicles that match exactly what our customers demand.”
Stellantis intends to invest more than $30 billion on its electrification plan while planning to be 30% more efficient than the rest of the industry regarding total Capex and R&D spend versus revenues.
The ventures will help Stellantis towards its goal of 40% of its sales in the US being EVs and 70% of its European sales being low-emission by 2030.
The company aims to make the cost of owning an EV equal to petrol-powered models by 2026.
Stellantis was formed in January from a merger of Italian-American Fiat Chrysler and French Groupe PSA.
Fiat Chrysler had been working with LG in EVs since 2014.
Stellantis aims to secure more than 130GWh of global battery capacity by 2025 and more than 260GWh by 2030.
The battery plant transactions are subject to regulatory approvals.