2 Companies Accelerating the Race Toward EVs
October's third week opened with announcements from two very different players in the electric vehicle (EV) market. Stellantis (NYSE: STLA), the multinational owner of Jeep, Ram, Dodge, Chrysler, Fiat, Peugeot, and many other car brands, announced plans for a new North American EV battery factory. Foxconn (OTC: FXCNF), a Taiwanese electronics manufacturer now allied with EV start-ups Fisker (NYSE: FSR) and Lordstown Motors (NASDAQ: RIDE), showed the world a trio of EV prototypes. The market's reaction to all this was mixed, but the ongoing activity points to a bullish trend for the planet's vehicular electrification.
Though the agreement exists as a memorandum of understanding (indicating an intention to work together but not a legally binding contract), LG Energy Solution intends to partner with Stellantis to manufacture batteries in North America. The partnership plans to launch a joint venture making 40 gigawatt-hours (GWh) of EV batteries yearly. They will start making batteries in 2024 if all goes according to plan. The press release notes the intention is to "help power Stellantis' goal of realizing more than 40% of its sales in the U.S. comprised of electrified vehicles by 2030." The factory's location hasn't yet been decided on.
While the planned battery plant is a significant step in EV manufacturing, Stellantis' investment still looks relatively limited and hesitant compared to the plans of other EV makers, present or potential.
Source Fool.com
