South Korean battery maker Samsung SDI and global car maker Stellantis have reportedly signed a deal to jointly produce electric vehicle batteries for the North American market.
Reuters reported on Tuesday that Samsung SDI had signed an MOU with the carmaker, which owns the Jeep, Dodge and Chrysler brands among others, and the location of the battery joint venture is under review.
The news came a day after Stellantis made a similar deal with LG Energy Solution.
Samsung SDI, an affiliate of Samsung Electronics, currently operates three electric vehicle battery plants worldwide… in South Korea, China and Hungary….and now the company is expanding to North America.
Citing industry sources, South Korea's Yonhap news agency reported the two companies plan to build a factory in the United States.
"The American market is one of the largest and important electric vehicle markets along with Europe and China. And President Biden publicly mentioned the importance of it. Among Korean EV battery makers, LG Energy Solution and SK On already have battery factories in the U.S., but not Samsung SDI. This MOU is meaningful in a sense that it can now secure all three major strategic bases in terms of electric vehicle batteries."
No details on the total capacity of the joint venture have been disclosed yet… but industry watchers expect the plant to produce 10 gigawatt hours of batteries each year, enough for roughly 140-thousand Hyundai IONIQ5 cars.
As more companies are jumping into the North American battery market
the expert added that it is getting important for Korean firms to keep their own competitive edge over their global rivals.
Seo Eunkyung, Arirang News.