Battery packs manufactured by Samsung SDI / Courtesy of Samsung SDI
By Kim Yoo-chul
Samsung SDI, the battery affiliate of Samsung Group, said Friday that its first joint venture (JV) in the United States will start production in the first half of 2025 at the earliest.
In a statement, Samsung SDI said that its battery JV, the result of a collaboration with Stellantis of the United States, will have an initial annual production capacity of 23 gigawatt per hours (GWh) and could increase to 40 GWh.
“The Samsung SDI-Stellantis battery JV will manufacture battery cells and modules. Regarding the location of the battery JV in the United States and its name, an announcement will be made once the review process is completed,” Samsung said in its release. “Batteries to be manufactured from the JV will be supplied to Stellantis’ factories in the United States, Canada and Mexico for use in its upcoming plug-in hybrid and pure electric vehicle (EV) models.”
The Korean company was hoping that the JV will support Stellantis’ goal of having more than 40 percent of its North American sales consist of EVs by 2030. At a recent EV event, Stellantis had named various U.S. brands slated to join its electrification drive. Stellantis owns the Jeep, Dodge and Ram brands in the U.S., among others.
An aerial photo shot using a drone shows the Fiat Chrysler Assembly Plant near Belvidere, IL., the United States, Oct. 18. EPA-Yonhap
Samsung SDI said it recently signed a deal with Stellantis to construct the JV plant.
“Because Samsung SDI has been supplying EV batteries for Fiat’s 500e and Jeep’s Wrangler 4xe models, the agreement will help the two entities further strengthen their already solid partnership,” it added.
The release came after Samsung’s chief crosstown rival LG Energy Solution (LGES) said it had also signed an agreement with Stellantis to operate a separate battery JV in the United States, which will start production by the first half of 2024.
Investors are eyeing which type of batteries will be manufactured at the LGES-Stellantis and Samsung SDI-Stellantis factories. Sources said that the LGES-Stellantis JV is focusing on the production of pouch-type batteries, while the Samsung SDI-Stellantis JV will roll out rigid-type batteries.
But the Samsung statement did not say whether the batteries produced by the JV will be supplied only to Stellantis. Samsung SDI is also supplying batteries to EV maker, Rivian. LGES, for example, operates a battery JV with General Motors in the U.S. state of Ohio and recently announced a plan to build a second battery factory in the U.S. state of Tennessee.Internet Explorer Channel Network