Stellantis N.V. [NYSE: STLA] disclosed that it has joined hands with LG Energy Solution. Both the firm has inked a Memorandum of Understanding (MoU) to establish a joint venture. The firms will manufacture battery cells and modules for North America. It has been revealed that the batteries manufactured at the new facility will be provided to Stellantis assembly plants throughout the US, Canada, and Mexico.
STLA stated that this MoU is proof that the firm is implementing its insistent electrification road map. It also shows that the firm is pursuing the commitments it has made during its EV Day event in July. The firm believed that the ‘Gigafactory’ coming to the Stellantis portfolio will help the firm to accomplish a total minimum of 260-gigawatt hours of capacity by 2030.
Furthermore, STLA and LG Energy Solution are planning that the JV will build a new battery manufacturing facility. The new facility will help Stellantis to achieve its goal of more than 40% sales in the U.S. The goal is the manufacturing of electrified vehicles by 2030. The plant is planning to have a yearly production capacity of 40-gigawatt hours. It has set the target to commence by the first quarter of 2024.
In addition, the collaboration between the two companies in electrified vehicles started back in 2014 when LG Energy Solution was chosen by Stellantis to supply the lithium-ion battery pack system and controls for the Chrysler Pacifica Hybrid. The MoU will further reinforce their collaboration even further and continue utilizing each other’s strengths.