Benzinga | Oct 18, 2021 06:24AM EDT

Stellantis, LG Energy Solution Collaborate Over EV

* Stellantis NV (NYSE:STLA) and LG Chem Ltd's (OTC:LGCLF) LG Energy Solution agreed to form a joint venture to produce battery cells and modules for North America.

* The JV will establish a new battery manufacturing facility to power Stellantis' goal of realizing over 40% of its sales in the U.S. comprised of electrified vehicles by 2030. The plant aims to have an annual production capacity of 40-gigawatt hours by Q1 of 2024.

* The JV will supply the batteries produced at the new facility to Stellantis assembly plants throughout the US, Canada, and Mexico to install next-generation EVs.

* The partnership between the two companies in EVs dates back to 2014.

* Stellantis aims to invest over (euro)30 billion through 2025 in electrification and software development while targeting to continue to be 30% more efficient than the industry concerning total Capex and R&D spend versus revenues.

* The groundbreaking for the facility will likely take place in Q2 of 2022.

* Price Action: STLA shares closed higher by 1.99% at $19.98 on Friday.