The companies must sign a memorandum of understanding to form a joint venture to produce lithium-ion batteries in North America. The plant is expected to start in 2025 and have an initial annual production capacity of 23 gigawatt hours, with the possibility of increasing up to 40 gigawatt hours. Stellantis has confirmed an event will be held today.
The battery plant is expected to be built near Stellantis’ engine, casting and transmission plants in Kokomo, Indiana. In October, the Franco-Italian group, which notably includes Peugeot, Fiat and Chrysler, announced plans to invest $229 million in its three Kokomo factories to produce eight-speed electrified transmissions.
In March, Stellantis and LG Energy Solution had already formalized a $4.1 billion investment in a lithium-ion battery production joint venture in Canada, which will have an annual production capacity of more than 45 gigawatt hours. The companies plan to begin operations in 2024.