As per Tavares’s press release, “Today’s announcement further solidifies our global battery production footprint and demonstrates Stellantis’ drive toward a decarbonized future.”
According to Yoonho Choi, CEO of Samsung SDI, “We have secured a solid foothold in a rapidly growing North American EV market through the joint venture with Stellantis.”
Samsung SDI Co. Ltd. is a South Korean battery and electronic material manufacturer. The headquarter is in Yongin, Gyeonggi-do, South Korea. The company operated its business in the Energy solutions and electronic materials segment. The company was founded in 1970. The subsidiaries are Novaled GmbH, Samsung SDI America, Inc. The revenue of the company in 2022 is $12.39 Billion.
Stellantis N.V. is a multinational automotive manufacturing company founded in 2021. The foundation is due to the 50-50 cross-border merger between Italian-American conglomerate Fiat Chrysler Automobiles and the French PSA Group. The company is headquartered in Hoofddorp, Netherlands. It was founded in 2021. The net revenue of the company in 2022 is $41.5 Billion.
Both the companies with different expertise are collaborating on a Joint venture investment of more than $2.5 billion in an electric vehicle battery plant in the US. The company is planning to start the production by 2025, at the Kokomo, Indiana., plant with an annual production capacity of 23-gigawatt hours (GWh).
As per Stellantis CEO Carlos Tavares’s interview with CNBC, the observation of the shortage of EV batteries in the period 2024-2025 due to the raw material scarcity for batteries and slow adoption of EVs in the timeframe 2027-208 is leading to the expectation of the shortage.
Hence the company is expecting to increase the investment to about $3.1 billion to increase 33 GWh in the next few hours.
As per Tavares’s press statement, “Just under one year ago, we committed to an aggressive electrification strategy anchored by five gigafactories between Europe and North America.”
In the Joint venture, Samsung SDI provides battery and electronic material technologies with Stellantis.
Why Kokomo by Tavares “a rich and long history for our company.”?
The main goal of Yoonho Choi, Samsung SDI, is “We will contribute towards meeting the climate change target.”
The PRiMX technology will be used by the Samsung SDI for EV battery cell production and modules for the North American market. PRimX is launched as a premium battery brand by Samsung.
Stellantis are aiming for global annual battery EV sales of 5 million vehicles by 2030. The company is expecting 100% passenger car sales in Europe and 50% passenger car and light-duty truck sales in North America.
Their next target is also to increase battery capacity by 140 GWh to 400 GWh for supporting five battery manufacturing plants.
The situation clearly shows that 2025 will be a competitive market for every electric vehicle and may be a crucial year for the automotive industry to create what can be known as a historical evolutionary time in automobile history.
It also shows, that the companies will be pushing their product and hence a dire need for every auxiliary component or the need for the electric battery will surge. The OEMs also need to be seen how much they will upscale their production to meet future needs.