Attention Focusing on Samsung SDI's Moves
LG Energy Solution will join hands with Stellantis, one of the top three U.S. automakers, to set up an electric vehicle battery plant in North America.
The company announced on Oct. 18 that it has signed a memorandum of understanding (MOU) with Stellantis on establishing a joint venture company with an annual battery production capacity of 40 GWh. The amount of investment has been kept under wraps, but considering the production volume, the two companies are expected to invest a total of 4 trillion won.
The selection of the factory site is in the final review process. Ground will be broken in the second quarter of next year, with production slated to start in the first quarter of 2024. The batteries produced at the factory will be supplied to Stellantis' U.S., Canada, and Mexico factories and go into next-generation electric vehicles.
Stellantis was launched in January through a merger between FCA, an automobile company jointly established by Italian and U.S. automakers, and PSA of France. In terms of sales volume, it ranks fourth in the world after Volkswagen, Toyota, and the Nissan-Reno-Mitsubishi Union. Its brands include Peugeot, Citroen, Fiat, Chrysler, and Jeep. Stellantis plans to invest 30 billion euros in its transformation into an electric vehicle maker by 2025.
Meanwhile, attention is focusing on future moves of Samsung SDI, which was originally mentioned as a joint venture partner for Stellantis. "The possibility of Samsung SDI and Stellantis establishing a joint venture company has not vanished yet," said Cho Hyun-ryul, a researcher at Samsung Securities. As LG Energy Solution has decided to set up a battery plant with Stellantis in the United States, Samsung SDI may do the same in both the U.S. and Europe. “The possibility of Samsung SDI entering the United States has become somewhat unclear, but considering Stellantis' future battery ordering plan, Samsung SDI still has a chance to join hands with Stellantis.”