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Samsung (KS:005930) SDI Co Ltd of South Korea announced on Friday that it has entered into a joint venture agreement with automaker Stellantis NV to build electric vehicle (EV) battery cells and modules in the United States.
The joint venture plans to begin operations in the first half of 2025, with an initial annual battery manufacturing capacity of 23 gigatonnes (GWh), according to the South Korean battery manufacturer.
According to Samsung SDI, the joint venture’s yearly battery production capacity could expand to 40 GWh in the future. The financial terms of the transaction were not disclosed. The batteries manufactured at the joint venture in the United States will be sent to Stellantis factories in the United States, Canada, and Mexico.
The factory’s location is being reconsidered. Samsung SDI, a subsidiary of South Korean tech behemoth Samsung Electronics (OTC: SSNLF), currently operates EV battery manufacturing factories in South Korea, China, and Hungary, supplying customers such as BMW and Ford Motor Company (NYSE: F).
The Stellantis-Samsung SDI collaboration comes less than a week after the world’s No. 4 automaker signed a battery joint venture agreement with South Korea’s LG Energy Solution. Stellantis has secured up to a yearly battery production capacity of 80 GWh through these two joint ventures, which could power about 1.2 million electric vehicles.
Stellantis, which was founded in January by the merger of Italian- American Automaker Fiat Chrysler and France’s PSA, has stated that it hopes to secure more than 130 GWh of worldwide battery capacity by 2025 and more than 260 GWh by 2030.
As of 0540 GMT, Samsung SDI shares were up as much as 2.4 percent to 740,000 won ($628), the highest level since late last month, compared to the benchmark KOSPI, which was down 0.2 percent.
Story by : Norvisi Mawunyegah