Samsung SDI and Stellantis to build U.S. battery factory

Industry

Published: 24 May. 2022, 18:19

Samsung SDI and Stellantis to build U.S. battery factory

Samsung SDI electric car batteries [SAMSUNG SDI]

Samsung SDI is building an electric vehicle (EV) battery factory in Indiana with Stellantis, according to a Reuters report.

The factory will be the Korean battery maker's first battery facility in the United States. Samsung SDI only has a battery pack assembly facility in Detroit.

Samsung SDI declined to confirm.

In October, the two companies signed an agreement to form a joint venture to build a battery factory in North America.

The joint venture will produce battery cells and modules — battery cells in frames — starting from the first half of 2025 with an annual capacity of 23 gigawatt-hours (GWh).

Samsung SDI said the production capacity could be expanded to as much as to 40 GWh in the future.

Netherlands-based Stellantis was formed last year in a merger between Fiat Chrysler Automobiles and the PSA Group, and has 14 brands, including Chrysler, Jeep, Maserati, Peugeot and Citroen.

Stellantis currently owns a plant in Kokomo, Indiana.

Trade rules in North America are encouraging joint production between battery suppliers and automakers.

A free trade agreement between Canada, Mexico and the United States called the United States-Mexico-Canada Agreement (USMCA) requires automobiles sold in the bloc to have 75 percent of their components manufactured in North America to qualify for zero tariffs.

BY SARAH CHEA [chea.sarah@joongang.co.kr]