Production scale in 2025 23GWh… Can be expanded to 40GWh in the future
Relieve the burden of local production ahead of the New North American Free Agreement (USMCA)
Competition among the three ‘K-battery’ companies in North America is likely to intensify
▲Samsung SDI Giheung Plant (Newsis)
Samsung SDI and Stellantis will establish the first electric vehicle battery cell and module production corporation in the United States. Samsung SDI has maintained its independent route without joint ventures with automakers, and this cooperation is expected to speed up its penetration into the North American market.
On the 22nd, Samsung SDI announced that the two companies had recently signed a memorandum of understanding (MOU) to establish a joint venture (JV) for the production of batteries for electric vehicles.
The joint venture decided to produce electric vehicle battery cells and modules at an annual capacity of 23 GWh (gigawatt hour) for the first time in the United States from the first half of 2025. The production scale can be expanded up to 40 GWh in the future.
Previously, Samsung SDI announced that it had plans to advance into the US in its second quarter earnings conference call, and recently mentioned that it is considering multiple candidates such as Illinois. Within two months, the partnership with North American automakers was officially announced.
Through this joint venture, Samsung SDI will be able to proceed with the production of battery cells and modules for electric vehicles in the United States without any setback ahead of the entry into force of the New North American Free Agreement (USMCA) scheduled for July 2025.
Stellantis can secure production capacity to achieve 40% of EV sales in North America by 2030.
▲ Samsung SDI EV battery photo data (Photo courtesy of Samsung SDI)
The name and location of the joint venture have not been specifically determined. The batteries produced by the joint venture will be supplied to Stellantis’ plants in the United States, Canada, and Mexico, and will be installed in the next-generation electric vehicles of the Stellantis brand, from plug-in hybrid vehicles (PHEVs) to pure electric vehicles (EVs).
Samsung SDI has been supplying EV batteries to vehicles such as Fiat’s ‘500e’ and Jeep’s ‘Wrangler 4xe’ before the signing of this MOU. The company expects that the cooperation between Samsung SDI and Stellantis will be further consolidated by the establishment of the joint venture.
With the establishment of this joint venture, Samsung SDI’s electric vehicle battery production base will be expanded to a total of four locations including Ulsan in Korea, Hungary, and Xi’an in China.
Jeon Young-hyeon, president of Samsung SDI, said, “I am delighted to establish a joint venture with Stellantis, which is accelerating its electrification strategy in line with the eco-friendly era. We will do our best to provide the highest level of satisfaction to our customers in the market.”
“Through this new battery joint venture, we will solidify our position in the North American electric vehicle market and win the competition,” said Carlos Tavares, president of Stellantis. We will continue to develop,” he said.
As Samsung SDI enters the North American market in earnest, competition among the three domestic battery companies is expected to intensify in this market.
Currently, LG Energy Solution has confirmed a plan to build a battery joint venture in the United States in cooperation with GM and SK On with Ford. In addition, LG Energy Solution signed a memorandum of understanding (MOU) with Stellantis on the 18th for an electric vehicle battery joint venture. The goal is to build an annual 40GWh production facility in North America.
According to ‘SNE Research’, an energy market research company, the demand for electric vehicles in the US is expected to increase 12-fold from 305,000 units in 2020 to 3827,000 units in 2025. In terms of the growth rate, it is faster than the European (10 times) or China (5.5 times) markets. At this rate, the U.S. share of the global electric vehicle market by 2025 will reach 20.8%.
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