Stellantis, LG Energy Solution to form battery JV for North America

Stellantis entered a preliminary agreement with battery maker LG Energy Solution to produce battery cells and modules for North America, as the automaker rolls out its 30-billion-euro ($35 billion) electrification plan.

Stellantis and LG will form a JV to produce battery cells and modules at a new facility that will have an annual production capacity of 40 gigawatt-hours, the automaker said in a statement Monday.

The batteries produced will be supplied to Stellantis' assembly plants in the U.S., Canada and Mexico for installation in hybrid and full-EVs, to support its goal of having more than 40 percent of its U.S. sales as electric by 2030.

The announcement comes weeks after Stellantis and its partner TotalEnergies agreed to open up their battery cell JV ACC to Daimler, to expand their European sourcing of battery cells.

The new North American plant is targeted to start by the first quarter of 2024.

The location of the plant is under review and will be announced at a later date, with the groundbreaking for the facility expected in the second quarter of 2022, the companies said.

Stellantis earlier this year announced it would invest about $35 billion through 2025 on electrifying its vehicle lineup.

As part of this plan, the automaker said it would build three battery plants in Europe -- in Germany, France and Italy -- and two in North America, including at least one in the U.S.