Stellantis CEO, Carlos Tavares, has revealed that the company will need one or two more large factories in the United States to meet its electric vehicle (EV) battery production targets.

Speaking at the inauguration of a gigafactory in northern France, Tavares stated that Stellantis would require additional plants in North America, where they have already announced plans for two sites. Tavares also highlighted the “very favorable” investment conditions in the United States, thanks to the U.S. Inflation Reduction Act.

Stellantis, the parent company of popular brands like Fiat and Peugeot, has set a goal to achieve a global battery production capacity of 400 gigawatt-hours (GWh) by 2030. The company has already announced a plant in Canada and another in the U.S. state of Indiana.

Additionally, Stellantis has two gigafactories currently under construction in Europe. The combined output of the company’s three gigafactories will be 120 GWh.

The shift towards EVs is a significant trend in the automotive industry as manufacturers strive to reduce their carbon footprint and meet emissions targets. Geopolitical risks with China have also prompted companies with operations inside the country to diversify its supply chains. Disruptions in the supply chain could prove catastrophic.  A diversified battery production capability plays a crucial role in this transition.