According to industry-related reports, Stellantis and Samsung SDI are expected to announce on May 24, local time, that they will build a new lithium-ion battery plant in Indiana to accelerate Stellantis’ plans for electric vehicle production.

　　The joint venture battery plant is expected to be built near Stellantis’ engine, foundry and transmission plant in Kokomo, Indiana, the people said. In October, Stellantis said it would invest $229 million in three plants in Kokomo to make eight-speed electric transmissions.

　　Recently, U.S. President Biden also said during his visit to the Pyeongtaek campus of Samsung Electronics in South Korea that "Samsung will cooperate with Stellantis to build a new factory in the United States to produce electric vehicle batteries."

　　In response, Stellantis said it will provide an update on the company's future operations in Kokomo, Indiana, on Tuesday, when its North American chief operating officer Mark Stewart and Indiana Governor Eric Holcomb will be present.

　　According to the data, in October last year, Stellantis and Samsung SDI signed a memorandum of understanding to establish a joint venture to produce lithium-ion batteries in North America. The two companies said the plant is scheduled to start production in 2025 with an initial annual capacity of 23GWh, which will increase to 40GWh in the future.

　　SES Power noticed that, in addition to the two companies mentioned above, many lithium battery giants are actually accelerating the expansion of the US market or have set up factories there.

　　In March of this year, it was reported that LG New Energy plans to invest 1.7 trillion won (about 1.36 billion U.S. dollars) to build its first cylindrical battery factory in the United States in Arizona, the United States, with a planned annual production capacity of 11GWh. Before that, LG New Energy had set up a power battery factory in Michigan, USA.

　　In addition, in January this year, LG New Energy announced that it will jointly invest $2.1 billion with General Motors to build a third battery factory in the United States, with an annual production capacity of 50GWh; In the first half of the year, LG New Energy and GM announced the location of the fourth joint venture plant, which is expected to have a production capacity of 30GWh; in March, LG New Energy and Stellantis signed an agreement to establish a joint venture in Canada and build the first large-scale plant. Domestic electric vehicle battery manufacturer. The joint venture will invest more than 5 billion Canadian dollars (about 3.907 billion US dollars) with a target annual production capacity of more than 45GWh.

　　In addition to a planned $11.4 billion investment with Ford to build three battery plants in the US, SK On already has two battery plants in Georgia (with annual capacities of 9.8 GWh and 11.7 GWh), and is taking a stake in the former with Hyundai Motor The latter is in final negotiations on the issue of a battery factory in Georgia. According to Korean media reports, SK On's new battery factory in Georgia is expected to invest 3 trillion won (about 2.4 billion US dollars), with a planned annual production capacity of 40GWh.

　　According to media reports, LG New Energy, Samsung SDI and SK On Korea's three major battery manufacturers plan to build a total of 11 battery factories in the United States by 2026.

　　In addition, recently, Hyundai Motor Group has reached an agreement with Georgia to spend $5.54 billion to build its first dedicated electric vehicle and battery factory in the United States. The new plant will break ground in early 2023 and start production in the first half of 2025.

　　To produce next-generation 4680 batteries for Tesla, Panasonic has decided to buy land in Oklahoma or Kansas to build a new factory.

　　CATL's site selection for its US power battery factory has also entered the final review stage. The CATL U.S. plant is expected to supply batteries to BMW and Ford, and potential locations for the plant include Kentucky and South Carolina.

　　SES Power believes that there are many reasons why the United States will become the first choice for major battery manufacturers to build factories overseas in the near future, but the most fundamental is the US government's support for power battery policy. We have many partners in the United States, among which lithium iron phosphate battery packs that can perfectly replace lead-acid batteries are the most popular, such as 12V100Ah, 12V200Ah, 24V100Ah, 24V200Ah, 36V100Ah using CATL, EVE square aluminum-shell lithium iron phosphate cells, 48V50Ah, 48V100Ah, 48V200Ah, 72V100Ah and other products. They are widely used in electric vehicles, energy storage, photovoltaics, microgrids and other industries.

　　The United States is the third largest auto market in the world, where Tesla, Rivian, General Motors, Ford, etc. are all gathered. In order to attract major battery manufacturers to produce batteries in the United States, the US government has issued a number of preferential policies:

　　In May last year, US President Biden proposed a $174 billion electric vehicle development plan, and the US government will provide subsidies for new battery factories.

　　In February of this year, the U.S. Department of Energy (DOE) issued two notices to provide a total of $2.91 billion in funding for battery material refining and construction of battery material processing, battery pack manufacturing facilities, and recycling facility development. Among them, the first notice indicates that it is expected to provide about 2.8 billion US dollars to subsidize research and development in the field of electric vehicle battery processing and increase battery manufacturing; the second notice indicates that about 60 million US dollars will be provided to fund electric vehicle battery recycling and two Research, development and demonstration of secondary use applications.

　　In terms of promoting the layout of the battery supply chain, in March this year, US Energy Secretary Jennifer Granholm and Democratic Senator Joe Manchin announced a plan to produce lithium batteries in the United States. The Palachia region will gradually transform to clean energy, and will play an important role in the U.S. lithium battery supply chain in the future.

　　In short, for the United States, the establishment of factories here is conducive to the development of the local battery industry and reduces the dependence on raw materials; it is a huge opportunity for companies to set up factories in the United States. At the same time, Chinese companies such as CATL will face greater pressure.

　　Of course, SES Power is just the beginning, and it can be expected that the competition in the battery field will be more intense in the future!