(WXYZ) — Stellantis, formerly Fiat Chrysler, announced on Monday it is partnering with LG Energy Solution Group to produce battery cells and modules in North America.
The move is the latest where an automaker has partnered with a battery company as they move toward more electric vehicles in the future.
The new venture will establish a battery manufacturing facility that Stellantis said will help it reach its goal of more than 40% of U.S. sales being electric vehicles by 2030.
The plant is expected to start producing batteries by the first quarter of 2024 with an annual production capacity of 40 gigawatt hours.
According to Stellantis, the batteries produced will be supplied to assembly plants across North America.
“Today’s announcement is further proof that we are deploying our aggressive electrification road map and are following through on the commitments we made during our EV Day event in July,” Stellantis CEO Carlos Tavares said in a release. “With this, we have now determined the next ‘gigafactory’ coming to the Stellantis portfolio to help us achieve a total minimum of 260 gigawatt hours of capacity by 2030. I want to warmly thank each person involved in this strategic project. Together, we will lead the industry with benchmark efficiencies and deliver electrified vehicles that ignite passion.”
“Establishing a joint venture with Stellantis will be a monumental milestone in our long-standing partnership,” LG Energy Solution President & CEO Jong-hyun Kim added. “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.”
According to the automaker, the location of the new facility is under review with details to be shared at a later date. The groundbreaking for it is expected to take place next year.
