Stellantis, Samsung SDI seal the deal for a second gigafactory in the U.S.
Stellantis N.V. and Samsung SDI today announced that they have signed a memorandum of understanding to construct second battery manufacturing facility in the United States.
While the location of the new facility is currently under review, the facility will have an initial annual production capacity of 34GWh and is expected to start production as early as 2027.
"This new facility will contribute to reaching our aggressive target to offer at least 25 new battery-electric vehicles for the North American market by the end of the decade," said Carlos Tavares, CEO, Stellantis.
Tavares added that they would be adding more capacity in the United States together with Samsung SDI.
The new facility will be Stellantis and Samsung SDI's second gigafactory through its joint venture StarPlus Energy.
In May 2022, the two companies announced their plans to establish their first battery manufacturing facility in Kokomo, Indiana which is expected to be operational by Q1 2025. The plant will have an annual production of 33GWh, up from its initial target of 23GWh, the partners announced.
"By establishing the joint venture with Stellantis last year, we laid a solid groundwork for marking our presence in North America," remarked Samsung SDI President and CEO Yoon-ho Choi.
"The second plant will accelerate our market penetration into the U.S. and help Stellantis push forward the U.S. transition to an era of electric vehicles by supplying the products featuring the highest levels of safety and quality."
The latest announcement of gigafactory is intended to be the sixth battery facility to support Stellantis' bold electrification plan outlined in Stellantis' Dare Forward 2030 strategic plan.
As part of Dare Forward 2023 strategic plan, Stellantis is targeting to secure about 400GWh of battery capacity to achieve a target of reaching 100% of passenger car battery electric vehicle sales mix in Europe and 50% of passenger car and light duty truck BEV sales mix in the US by 2030.