Stellantis and Samsung SDI have signed a memorandum of understanding to build a second battery gigafactory in the US through their StarPlus Energy joint venture.
The plant will have an initial annual production capacity of 34 GWh from the start of production, which is set for early 2027. The location of the new gigafactory is yet to be decided as it is currently under review. The joint venture’s first plant in the US, announced in May last year, is being built in Kokomo, Indiana and is set to launch in the first quarter of 2025 with an annual production capacity of 33 GWh, up from the previous target of 23 GWh.
Stellantis said the gigafactory will contribute to its target of offering 25 new battery EVs for the North American market by the end of the decade. Carlos Tavares, CEO, Stellantis said: “We are continuing to add more capacity in the US together with our great partner Samsung SDI and laying the next steps to reaching our carbon neutrality commitment by 2038.”
The new gigafactory is set to be the sixth battery facility to support Stellantis’ ‘Dare Forward 2030’ electrification plan, which aims to reach 100% passenger car battery EV sales mix in Europe and 50% passenger car and light-truck battery EV sales mix in the US by 2030. To achieve this target, the OEM is planning on securing 400 GWh of battery capacity.
Stellantis has been investing heavily in its transition to producing EVs across North America and in Europe. In 2021, Stellantis and LG formed a joint venture for Lithium-Ion battery production in North America. In the same year, the OEM joined Mercedes-Benz and energy provider TotalEnergies in investing in battery cell manufacturer Automotive Cells Company (ACC). Stellantis is now a key stakeholder in the company, which opened its first gigafactory in Billy-Berclau Douvrin, France in June this year.
In October, Stellantis signed a non-binding deal with GME Resources’ NiWest mining project in Western Australia for nickel and cobalt supplies for EV batteries after reaching a long-term deal earlier in 2022 to lock in lithium hydroxide supplies.
Commenting on the newly signed MoU for Stellantis and Samsung’s second US gigafactory, Yoon-ho Choi, president and CEO, Samsung SDI said: “By establishing the joint venture with Stellantis last year, we laid a solid groundwork for marking our presence in North America. The second plant will accelerate our market penetration into the US and help Stellantis push froward the US transition to an era of EVs by supplying the products featuring the highest levels of safety and quality.”
· Global light vehicle production forecast through 2035
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· Gigafactory plants by region
· Battery material price information