As it prepares to launch a handful of electric vehicles, Stellantis on Monday confirmed a joint venture with LG Energy Solution for North American battery production.
A memorandum of understanding between the two companies calls for a factory to produce battery cells and modules, which will be supplied to Stellantis assembly plants in the United States, Canada, and Mexico, the automaker said in a press release.
Stellantis and LG are targeting first-quarter 2024 for the start of battery production, with an annual production capacity of 40 GWh.
Ram 1500 BEV and platform - 2021 Stellantis EV Day
A location hasn't been finalized, but groundbreaking for the battery plant is scheduled for the second quarter of 2022. Stellantis hasn't confirmed that the factory will be located in the U.S., and it's worth noting that a Canadian or Mexican site could also suit its needs.
Stellantis has its own battery venture for Europe, with Mercedes-Benz recently joining, but this new announcement answers where cells and modules for EVs produced in the U.S. are likely to come from.
Products using those components so far include an all-electric Jeep (following the 4xe plug-in hybrids), an electric Ram 1500 pickup truck, and an electric Dodge muscle car.
Jeep Wrangler Magneto concept
Some of those models will target 500 miles of range, according to Stellantis. The company is aiming for 40% of its U.S. sales to consist of electrified vehicles (including hybrids) by 2030.
LG already supplies cells for the Chrysler Pacifica Hybrid minivan, which has been one of our favorite plug-in hybrids over the years.
General Motors already has a joint venture with LG, called Ultium Cells LLC—with plans for four battery factories in the U.S. Factories in Ohio (supplying the GMC Hummer EV and Chevrolet Silverado EV) and Tennessee (supplying the Cadillac Lyriq) have already been confirmed, with two more locations yet to be announced.