Jeep-parent Stellantis (NYSE:STLA) announced Monday it will partner with Korea’s Samsung SDI (KS:006400) to build a second electric vehicle battery plant in the United States.
The companies have announced that they are currently evaluating the location for their new plant. According to their news release, they have already entered into a memorandum of understanding; however, the finalization of the transaction is contingent upon the execution of definitive documentation.
The announcement about the upcoming plant aligns with the statements made by Stellantis CEO Carlos Tavares in May. During an event in France, Tavares mentioned the necessity of having up to two more large facilities in the United States. He made these comments in relation to the inauguration of a plant in Billy-Berclau Douvrin, located in northern France, which is part of a joint venture involving Mercedes-Benz (ETR:MBGn) and TotalEnergies (EPA:TTEF).
“This new facility will contribute to reaching our aggressive target to offer at least 25 new battery electric vehicles for the North American market by the end of the decade,” Tavares said in the release. “We are continuing to add more capacity in the United States together with our great partner Samsung SDI and laying the next steps to reaching our carbon neutrality commitment by 2038.”
As of now, the companies are already in a partnership for a plant located in Kokomo, Indiana. Additionally, Stellantis has a separate agreement with LG Energy Solution for a battery plant in Windsor, Ontario.
Construction on the Windsor plant had been delayed due to a dispute between Canadian officials and Stellantis regarding subsidies. However, this issue has now been resolved.
Shares of STLA are up 1.20% in pre-market trading on Monday.