Automaker Stellantis, Samsung to build second EV battery factory in US
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Stellantis intends for its electric vehicles to account for 50% of its sales in the US by 2030.
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The Stellantis sign is seen outside the Chrysler Technology Center, in Auburn Hills, Mich. U.S., Jan. 19, 2021. (AP)
A Samsung subsidiary is working with US-European automaker Stellantis, whose brands include Fiat, Jeep, and Peugeot, to build a second electric car battery factory in the US, according to both companies.
The location has not been revealed yet, but Stellantis and South Korea's Samsung SDI, which specializes in producing electric car batteries, stated that production is due to launch in 2027 with an initial yearly output capacity of 34-gigawatt hours (GWh).
Stellantis intends for its electric vehicles to account for 50% of its sales in the US by 2030.
In his statement, Stellantis chief executive Carlos Tavares said: "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".
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To reach its sales target, the company intends to secure approximately 400 GWh of battery capacity. Meanwhile, a gigafactory is being built for Stellantis and Samsung SDI in Kokomo, Indiana is already in the works with an investment of between $2.5 billion and $3.1 billion and production is expected to begin in 2025 with a 33-GWh capacity.
Back in April, Samsung SDI announced a joint venture with General Motors for a $3 billion factory in the US as it already has EV battery plants in Vietnam, China, and Hungary.
Electric car sales are expected to increase by 35% this year to 14 million, increasing their proportion of the global auto industry to 18%, according to a new estimate released in April by the International Energy Agency (IEA).
