Report: Stellantis To Form Battery JV With Samsung SDI10/19/2021
Stellantis’ recent agreement with LG Energy Solution about a 40 GWh gigafactory in North America might not be the only one in the works.
According to Reuters and Korea Bizwire, the group is in talks also with Samsung SDI and reportedly signed a deal to set up a battery joint venture in North America (most likely in the U.S.). Well, Samsung SDI noted in its Q2 report that there is an undisclosed “new EV project,” so maybe this is it.
“”The two companies (Samsung SDI and Stellantis) have struck a MOU (memorandum of understanding) to produce EV batteries for North America,” the person with knowledge of the matter told Reuters. The source spoke of condition of anonymity because of the sensitivity of the matter.”
Samsung SDI, unlike LG Chem’s LG Energy Solution and SK Innovation’s SK On, does not have a battery plant in North America yet and so far supplied customers from sites in South Korea, Hungary or China. A multi-billion investment would be then a major opportunity to expand the battery business.
The location, manufacturing capacity and amount as well as the timeframe remains unknown.
General Motors has selected LG Energy Solution as its strategic battery supplier, while Ford announced strategic agreements with SK Innovation. Both companies also uses LG Energy Solution’s batteries.
It would not surprise us if Stellantis would select Samsung SDI, in parallel to LG Energy Solution, for diversification.
Let’s not forget that Samsung SDI is also a battery supplier to Rivian – currently small, but a promising EV startup. According to reports from August, Samsung SDI might build a battery plant near Rivian in Bloomington-Normal, Illinois.
Who knows, maybe there will be two Samsung SDI battery plants – one for Rivian and one for Stellantis?
Source: Read Full Article