LG Energy Solution Ltd (KS:373220) announced that it would invest around $2.1 billion in a joint venture with Stellantis NV (NYSE:STLA) to build an electric vehicle battery plant in North America. According to a regulatory filing Wednesday, LG Energy will spend $1.464 billion to buy a 51% stake in the joint venture and $637.3 million to guarantee debt and support its credit line.
Both sides expect production to begin in the first quarter of 2024 at the plant, which should have an annual production capacity of 40-gigawatt hours.
Stellantis has also partnered with another South Korean battery maker, Samsung (KS:005930) SDI Co., for a similar EV battery joint-venture project with hopes of reaching its goal of electric vehicles making up 40% of its U.S. sales by 2030.
In a separate regulatory filing, LG said it plans to acquire a stake worth $542 million in ES America to respond to demand from EV startups in the United States. Reports show that LG may also be considering building a factory in Arizona.
"We are considering a new production site, but nothing has been decided yet," said a spokesperson at LGES.
By Michael Elkins