Last year, South Korean company Samsung SDI and multinational automaker Stellantis NV agreed to set up a $2.5 billion joint venture in Indiana that will be able to produce traction batteries with a total capacity of up to 33 GWh annually. This week has become known about the partners’ intentions to set up a second similar company in the USA.
All that is known about the new company so far is that it can start operations in 2027 and produce traction batteries with a total capacity of 34 GWh per year, but the location has not yet been determined. According to Stellantis CEO Carlos Tavares, the new battery company will help meet the goal of bringing at least 25 new electric vehicle models to the North American market by the end of this decade. At the same time, Stellantis expects to sell 5 million EVs per year, increasing EV sales to 50% in North America and reaching 100% in Europe.
For Samsung SDI, the new company offers the opportunity to expand its presence in the US market. The Korean battery maker is interested in receiving special subsidies from the US authorities, and the presence of a local partner to some extent guarantees an outlet and allows access to investment resources. For Samsung, SDI isn’t the only initiative in the US working with a local automaker. A joint venture with General Motors is to be set up and operated by 2026, which will produce 30 GWh of traction batteries per year.