Stellantis, LG Partner For EV Battery Plant for North American Cars
With automakers making large goals for future electrified vehicles, one of the major things they have to worry about going into the future is battery production. Nearly every automaker is going to need a serious supply of batteries for their electrified vehicles. So, automakers that wait to get something set up will be on the back foot when the production of EVs really begins. Looking to stay ahead of the general curve, Stellantis recently announced that it's partnering with LG to form a joint venture to produce battery cells and modules for North America.
Stellantis And LG Partner For Batteries
The announcement is just to inform people that Stellantis and LG have entered into a memorandum of understanding to form a joint venture. Other information, like where the facility will be and what vehicles will utilize the batteries will come at a later date. We do expect the upcoming Ram electric pickup truck and even Dodge's electric muscle to utilize the upcoming batteries. Jeep's electrified off-roaders, which will fit under the 4xe PHEV family, are also expected to feature batteries from the venture.
Right now, Stellantis is ready to state that the joint venture is to help the automaker, which has 14 companies under its umbrella, reach its goal of having more than 40 percent of sales in the U.S. come from electrified vehicles by 2030. The plant is expected to start producing batteries in the first quarter of 2024 and expects to have an annual production capacity of 40 gigawatt hours. Together, LG and Stellantis will produce batteries for pure electric vehicles, plug-in hybrids, and hybrids. The batteries will go to plants located in the U.S., Canada, and Mexico.
Automakers Are Split
Stellantis isn't the only automaker that's working with LG for electric car batteries. General Motors uses the company for the batteries in the Bolt EV and Bolt EUV. Those are involved in a massive recall over the risk of fire. The issue will see LG pay GM $1.2 billion over its faulty batteries. Ford, on the other hand, decided to work with SK Innovation for its batteries.
While quite a few automakers have decided to partner with other companies to make batteries for electric cars, some have decided to approach the issue on their own. Toyota recently announced that it plans to build a battery factory in the U.S. for its electrified vehicles as part of a $3.4 billion investment into automotive batteries through 2030. Instead of partnering with another company, Toyota's looking to its other brands for the solution. To make batteries, Toyota will work closely with Toyota Tsusho.
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