LG Energy Solution to set up EV battery JV with Stellantis in Canada, Reports Reuters
SAN FRANCISCO (Reuters) – South Korean battery giant LG Energy Solution Ltd (LGES) (373220.KS) said on Wednesday it plans to invest $1.5 billion to set up a joint venture with Stellantis NV (STLA.MI) in Canada.
LGES owns 51% of the joint venture, tentatively named “LGES-STLA JV” and Stellantis owns 49%, LGES said in a regulatory filing.
The South Korean battery maker added that its board approved a guarantee of debt regarding its joint venture with Stellantis, which stands at $627 million.
The company plans to build a battery factory in Arizona to supply to Tesla (TSLA.O) and other customers, two persons familiar with the matter told Reuters.
The U.S. factory is expected to produce cylindrical battery cells of different sizes, for customers, including EV makers Lucid and Proterra and Philip Morris (PM.N), maker of IQOS heated-tobacco sticks, one of the persons said.
Another person said startups like electric scooter makers will use batteries from the factory.
Tesla CEO Elon Musk said on Tuesday that battery production would be “the limiting factor” for vehicle production in two to three years, as the world’s largest electric vehicle maker aims to boost sales. read more He has called on suppliers to raise production, while Tesla starts making cells itself.
