Seoul [South Korea], October 19 (ANI/Global Economic): LG Energy Solution will establish a joint venture with Stellantis, the world's fourth-largest automobile maker, to produce battery cells for EV (Electric Vehicle) and accelerate to target the North American EV market.
LG Energy Solution announced on October 18 that it has signed a memorandum of understanding (MOU) agreement with Stellantis to form a joint venture with an annual production capacity of 40GWh for battery cells and modules in North America.
The factory site is under final review among important candidate sites in North America, and it is scheduled to start construction in the second quarter of next year and produce from the first quarter of 2024. Battery cells produced by the joint venture will be supplied to factories of Stellantis in the US, Canada, and Mexico for installation in next-generation EVs.
Through this joint venture, LG Energy Solution and Stellantis will further solidify their partnership since LG Energy Solution's battery supplies for Chrysler Pacifica in 2014.
Stellantis was launched in January this year through the merge of 'Fiat Chrysler Automobiles (FCA)' and French automobile company 'Peugeot Citroen (PSA)'. It is planning to invest about 41 trillion won (about 30 billion euros) in electrification transformation by 2025.
LG Energy Solution has maintained its unrivalled competitiveness not only in technology but also in production capabilities by establishing and successfully operating a battery plant for the first time in North America.
Through the partnership, LG Energy Solution is planning to remain at the top position in the EV market by securing a total production capacity of around 150GWh by 2025 in the US, including Stellantis joint venture with 40GWh capacity, GM joint venture Plant number 1 with 35GWh in Ohio, GM joint venture Plant number 2 with 35GWh in Tennessee, Holland plant in Michigan and independent additional investments.
Through this investment, LG Energy Solution will strengthen the production foundation as a global market leader by enhancing its five countries production system (total nine production factories) including Korea, North America, China, Poland and Indonesia. (ANI/Global Economic)