All eyes on Stellantis' possible partnerships with Korean battery makers
By Kim Bo-eun
Stellantis logo / Korea Times file
The world's fourth-largest carmaker Stellantis is accelerating its switch to electric vehicles (EVs), and attention is growing over whether the automotive group will join hands with a Korean battery manufacturer to target the U.S. market.
Stellantis, which launched as a merger between Fiat Chrysler Automobiles and PSA Group earlier this year, had lagged behind larger automotive groups in its drive for EVs, but in recent months has unveiled ambitious plans.
The carmaker stated that by 2025, 96 percent of vehicles of Stellantis brands including Jeep, Ram, Dodge and Fiat will have electrified options, with all models offering a fully battery-electric option by 2030.
CEO Carlos Tavares also said the company plans to control a larger portion of EV components including batteries and will announce plans this year to build a battery factory in North America.
Given the group is a relative latecomer to the EV market, projections are that it will likely opt to strike partnerships with battery manufacturers in setting up its own battery plants.
Expectations are that Stellantis could possibly unveil partnerships with battery makers at its upcoming "electrification day" event scheduled for July 8.
The U.S. is a key market for global carmakers, given that its EV market is forecast to grow exponentially in the coming years, under the Joe Biden administration's green policies. This is why battery makers are also jostling to secure opportunities.
To benefit from tax incentives, Korean battery makers are quickly setting up production bases in the U.S., both independently and in the form of joint ventures with carmakers.
LG Energy Solution has joined hands with GM and launched a joint venture, Ultium Cells. Two battery plants are being constructed under their agreement. LG's battery affiliate is also looking to invest 5 trillion won to build a separate plant in the U.S.
SK Innovation (SKI) and Ford are set to launch a joint venture that will build a battery plant at a cost of 6 trillion won ($5.32 billion). SKI is also independently building two factories in Georgia.
Samsung SDI is the only local battery maker that does not have a battery cell plant in the U.S. The Samsung affiliate in recent months affirmed its interest in setting up a production base there.
Industry projections are that Stellantis and Samsung SDI may tie up for strategic interests in the U.S. market. “We continue to review the matter of making investments for a new plant,” a Samsung SDI official said, declining to elaborate.
“A joint venture with a major carmaker would secure a large scale of supply,” an industry official said. “But at the same time a tie-up would also entail disadvantages.”