Samsung SDI becomes second Stellantis’s JV partner in U.S. after LG Energy Solution

2021.10.19 15:16:52 | 2021.10.19 15:51:11

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Samsung SDI Co., the only South Korean battery major lacking manufacturing facility in the United States, has chosen Stellantis N.V. for its first overseas joint venture on EV battery production, making the cross-border automaking group behind Fiat Chrysler brands a finished car partner to two Korean battery names.

According to industry sources on Tuesday, Samsung SDI signed a memorandum of understanding with the world’s No. 4 automaker, a day after LG Energy Solution struck $3.4 billion venture with the multinational company on JV manufacturing facility with 40GWh annual capacity.

Details about Samsung SDI’s investment size and factory location will be announced later.

Samsung SDI has battery production facilities in Korea, China and Hungary, while none in the U.S. where its rivals LGES and SK Innovation have been eagerly expanding to ride on the U.S. EV and green push.

Samsung SDI during a conference call on second-quarter earnings admitted it no longer can delay a facility addition in North America in response to the U.S.-Mexico-Canada trade agreement (USMCA) designed to benefit local production of electric vehicle parts in North America when it goes into effect in 2025. The company recently said it is considering multiple site candidates, including Illinois.

Stellantis born out of a merger between Fiat Chrysler Automobiles and French automaker Groupe PSA in January recently announced it plans to invest more than 30 billion euros ($35.5 billion) in electric vehicles and new software through 2025 as part of a major push to transition away from internal combustion engines. It is the third-largest EV brand in the U.S. market.

Shares of Samsung SDI closed 3.12 percent higher at 727,000 won on Tuesday.

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