Stellantis inks new US EV battery joint venture with Samsung SDI

October 20, 2021 (Last Updated October 20th, 2021 10:29)

Stellantis is apparently hedging its US EV battery bets with an additional JV.

Stellantis inks new US EV battery joint venture with Samsung SDI

Stellantis has agreed to set up a joint venture to produce EV batteries in the US with South Korean manufacturer Samsung SDI Company, according to unconfirmed reports citing industry sources.

The Netherlands-headquartered carmaker earlier this week announced a similar agreement with South Korea’s LG Energy Solution, to build a 40 gigawatt-hour (GWh) EV battery plant in the USA in what is expected to be a KRW4trn (US$3.4bn) joint investment.

A similar deal is now reported to have been signed with Samsung SDI, which has so far established an EV battery presence in China, South Korea and Europe (Hungary).

Details of the scale of the project have yet to be revealed but it is expected to be worth “billions of dollars”.

Samsung SDI noted in its second-quarter filing there was an undisclosed “new EV project” in the pipeline with analysts speculating this may be to what it was referring.

Stellantis, which comprises US brands including Chrysler, Dodge, Ram and Jeep and European brands such as Fiat, Lancia, Peugeot, Citroen, DS, Opel and Vauxhall, is targeting 40% of its US sales to be electrified by 2030 and had previously said it planned to spend EUR30bn on vehicle electrification and software development by 2025.

Earlier this year, General Motors agreed to form an EV battery manufacturing partnership in the US with LG Energy solutions and Ford is building a similar partnership with SK On, the South Korean EV battery manufacturer spun off from SK Innovation earlier this month.