Samsung SDI to activate 1st US facility of 23GWh in JV with Stellantis 2025

South Korea¡¯s Samsung SDI Co. will be churning out battery cells and modules in the United States from the first half of 2025 in 23 gigawatt-hours (GWh) capacity facility in the first year with eventual ramp-up to 40GWh dedicated for EV models of Stellantis N.V. bound for North America.

Samsung SDI in a press statement Friday confirmed the signing of a memorandum of understanding with the global No. 4 finished carmaker with the facility opening timed with the U.S.-Mexico-Canada Trade Agreement (USMCA) effectuation in July 2025.

The battery major with production base in Korea, China, and Hungary has not disclosed its spending for its first U.S. facility and joint-venture with Stellantis.

But when counting in the eventual scale-up, the project is expected to be in the similar scale of around 4 trillion won ($3.4 billion) 40 GWh joint venture between Stellantis and another Korean battery major LG Energy Solution announced earlier this week.

Shares of Samsung SDI were 1.9 percent higher at 737,000 won as of 2:00 p.m. Friday.

[Photo by Samsung SDI Co.]

Samsung SDI, the only Korean battery major lacking manufacturing facility in the U.S. ,has chosen Stellantis for its first overseas joint venture on EV battery production, making the No. 4 cross-border automaking group behind Fiat Chrysler brands a finished car partner to two Korean battery names.

Samsung SDI will be responsible for the power behind plung-in hybrid and pure EV models of Stellantis brands produced and assembled in the U.S., Canada, and Mexico.

Stellantis born out of a merger between Fiat Chrysler Automobiles and French automaker Groupe PSA in January recently announced it plans to invest more than 30 billion euros ($35.5 billion) in electric vehicles and new software through 2025 as part of a major push to transition away from internal combustion engines. It is the third-largest EV brand in the U.S. market.

[¨Ï Maeil Business Newspaper & mk.co.kr, All rights reserved]