South Korean battery maker Samsung SDI said it will build its first electric vehicle (EV) battery plant in the US with global carmaker Stellantis N.V., joining other local rivals’ moves to tap deeper into the region.
The announcement confirms earlier reports that the two recently signed a contract, which paves the way for Samsung SDI to join its domestic rivals, such as LG Energy Solution and SK On, to produce EV batteries in America.
Under the deal, Samsung SDI and Stellantis will begin producing EV battery cells and modules in the first half of 2025, starting with an annual production capacity of 23 gigawatt hours (GWh) and aiming for 40 Gwh going forward, according to the press release.
No details on the amount of investment and the size of the battery plant were provided, reports Yonhap news agency.
The output from the new plant will be supplied to Stellantis’ North America production lines, the US, Canada and Mexico, and will be installed in the automaker’s plug-in hybrid and EV lineups, the companies said.
The name and exact location of the joint venture have yet to be decided.
It will be Samsung SDI’s first production plant in the US market and its third overseas production base after the ones operating in Hungary and China. It has a domestic plant in the southern city of Ulsan.
The South Korean company aims to secure a stable supply foothold in America ahead of the free trade agreement among the US, Canada and Mexico, which requires carmakers to sell EVs installed with locally produced parts. The trade deal will take effect in July 2025.
–IANS
wh/sks/ksk/
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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South Korean battery maker Samsung SDI said it will build its first electric vehicle (EV) battery plant in the US with global carmaker Stellantis N.V., joining other local rivals’ moves to tap deeper into the region. The announcement confirms earlier reports that the two recently signed a contract, which paves the way for Samsung SDI to join its domestic rivals, such as LG Energy Solution and SK On, to produce EV batteries in America. Under the deal, Samsung SDI and Stellantis will begin producing EV battery cells and modules in the first half of 2025, starting with an annual production capacity of 23 gigawatt hours (GWh) and aiming for 40 Gwh going forward, according to the press release. No details on the amount of investment and the size of the battery plant were provided, reports Yonhap news agency. The output from the new plant will be supplied to Stellantis’ North America production lines, the US, Canada and Mexico, and will be installed in the automaker’s plug-in hybrid and EV lineups, the companies said. The name and exact location of the joint venture have yet to be decided. It will be Samsung SDI’s first production plant in the US market and its third overseas production base after the ones operating in Hungary and China. It has a domestic plant in the southern city of Ulsan. The South Korean company aims to secure a stable supply foothold in America ahead of the free trade agreement among the US, Canada and Mexico, which requires carmakers to sell EVs installed with locally produced parts. The trade deal will take effect in July 2025. –IANS wh/sks/ksk/(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.) Dear Reader, Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance. We, however, have a request. As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed. Support quality journalism and subscribe to Business Standard. Digital Editor