Stellantis, formed when Fiat Chrysler Automobiles merged with Groupe PSA, and lithium-ion battery supplier LG Energy Solution (LGES), plan to build a new battery manufacturing plant that will have an annual production capacity of 40 gigawatt hours.
The location of the facility is under review, but the joint venture will be in North America. Production is expected to begin by the first quarter of 2024.
Batteries made at the plant will be sent to Stellantis assembly plants where they can be installed into the company’s range of EV and plug-in hybrids.
“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,” said Carlos Tavares, chief executive of Stellantis.
“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.”
A partnership between the two companies was first established in 2014 when LG Energy Solution was selected by Stellantis to supply the battery pack system and controls for the industry’s first electric minivan, the Chrysler Pacifica Hybrid.
President and chief executive of LG Energy Solution said: “Establishing a joint venture with Stellantis will be a monumental milestone in our long-standing partnership. 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.”
The plant is part of Stellantis’ wider plans to invest more than €30bn through to 2025 in electrification and software development.
Further details of the new facility will be shared at a later date and is still subject to agreement on regulatory approvals.