LG-Stellantis to make batteries in North America

LG, whose batteries are perhaps best known for causing a $2 billion GM recall, is Stellantis’ joint venture partner for a North American battery plant. The well-publicized LG gaffe may have helped Stellantis negotiators quite a bit.

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The new plant is to start pumping out car batteries in early 2024, with an annual capacity of 40 gigawatt-hours. Stellantis’ own electrified-vehicle goal is 40% of the lineup, by 2030.

The batteries made in the new plant will be shipped to plants in the U.S., Canada, and Mexico, for plug-in hybrids and pure battery-electrics. This plant will bring Stellantis to a global 260 gigawatt-hour production capability in 2030.

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LG Energy Solutions had been chosen by Fiat Chrysler in 2014 for Pacifica Hybrid batteries; to date, these batteries seem to have been flawless.

The joint venture location is being reviewed, with groundbreaking scheduled for mid-2022.

Coincidentally, today Toyota announced a new plant to make batteries in the United States, with production starting in 2025. Toyota is planning to “go it alone” with batteries, spending $3.4 billion in the US over nine years to make batteries for EVs; their global battery program will cost $13.5 billion. Toyota also did not reveal the location, but said they would start with hybrid batteries before moving on to BEV parts. This countered an earlier strategy of making all EVs in Japan.

David Zatz started what was to become the world’s biggest, most comprehensive Mopar site in 1994 as he pursued a career in organizational research and change. After a chemo-induced break, during which he wrote car books covering Vipers, minivans, and Jeeps, he returned with some friends to create StellPower.com, which is intended to end up as an enduring partnership. Contact him at (973) 925-6058 or check out the new junkyard/slant six book he edited.