- 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 €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.
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