Stellantis reached a preliminary deal with LG Energy Solutions to produce battery cells and modules in North America.
The deal, which still needs approval by regulators, will see the two companies form a joint venture.
The facility, if constructed, will have an annual capacity of 40-gigawatt hours and will come online in 2024. For perspective, the Tesla Gigafactory in Nevada has an initial capacity of 35-gigawatt hours.
The deal with LG is part of a broader plan by Stellantis to invest $34.8 billion in electrification and software through 2025. The company hopes EVs will make up 40% of their sales in the US by 2030.
The factory will produce battery cells and modules for Stellantis plug-in hybrids and fully electric vehicles assembled in the United States, Canada and Mexico.
The companies did not disclose the total cost of the factory, nor did they confirm the location.
However, the companies do expect to break ground at the site in the second quarter of 2022.
