RTTNews | Oct 22, 2021 01:59AM EDT

01:59 Friday, October 22, 2021 (RTTNews.com) - Automaker Stellantis N.V. (STLA) announced Friday that it has entered into a memorandum of understanding with rechargeable battery maker Samsung SDI to form a joint venture to produce lithium-ion battery cells and modules for North America.

The transaction is subject to agreement on definitive documentation and customary closing conditions, including regulatory approvals.

The location of the new facility is currently under review and the companies will share further details at a later date. The new battery plant is targeted to start in 2025. It aims to have an initial annual production capacity of 23 gigawatt hours, with the ability to increase up to 40 gigawatt hours in the future.

Stellantis said it is now well advanced in the process of securing annual production capacity for electric vehicle batteries. This will result in achieving 40% of its sales in the U.S. comprised of electrified vehicles by 2030.

The battery plants will fulfill the needs of Stellantis assembly plants throughout the US, Canada, and Mexico for installation in next-generation electric vehicles.

Stellantis plans to invest more than 30 billion euros through 2025 in electrification and software development.

Young-hyun Jun, President and CEO of Samsung SDI, said, "With this battery joint venture, we will do our best to meet the high standards of our customers in the North American EV market leveraging Samsung SDI's battery technology, high quality products and safety measures."

Read the original article on RTTNews ( https://www.rttnews.com/3234705/stellantis-in-deal-with-samsung-sdi-to-form-north-american-jv-to-produce-lithium-ion-battery.aspx)

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