Samsung SDI said on Friday that it will form a battery manufacturing joint venture with automobile giant Stellantis.
The pair’s joint venture will build a battery factory in the US with a capacity of 23GWh by 2025, the South Korean battery maker said.
Samsung SDI said the capacity could be upped to 40GWh.
The joint venture, which is yet to be named, will supply batteries to Stellantis’ factories in the US, Canada and Mexico.
Samsung SDI said the joint venture will allow the company to manufacture batteries for electric vehicles without problems before USMCA comes into effect on July, 2025.
Samsung SDI already has battery factories in South Korea, Hungary and China.
Meanwhile, earlier this month, LG Energy Solution also announced that it will form a joint venture with Stellantis that will produce 40GWh of batteries per year.
The factory will start construction during the second quarter next year and start manufacturing batteries during the first quarter of 2024, LG Energy Solution had said.
Stellantis will be procuring 63GWh of batteries from 2025 from its two joint ventures with the South Korean battery makers.
LG Energy Solution also has a joint venture with General Motors that is aiming to manufacture 70GWh of batteries per year. It is also manufacturing its own battery factory in the US that will have a capacity of 40GWh per year.
Stellantis, the world’s fourth-largest automobile maker, said in July that it aims to have 70% of its vehicles sold in Europe be electrical and 40% in the US by 2030.
It had said it plans to spend 41 trillion won in the next five years to build five battery factories in Europe and North America to secure a production capacity of 130GWh by 2025 and 260GWh by 2030.