Stellantis announced plans to invest more than $2.5 billion in partnership with Samsung SDI, to build its first factory in the U.S. to make batteries for electric vehicles.
European automaker Stellantis has decided to build its new electric vehicle battery factory in Kokomo, Indiana. The automaker has partnered with South Korean EV battery maker, Samsung SDI. On Tuesday, the announcement was confirmed along with Indiana Governor Eric Holcomb and several local politicians in Kokomo.
The Indiana plant is targeted to start in 2025. Its annual production capacity is expected to be 23-gigawatt hours (GWh), with plans to increase to 33 GWh in the coming years. As demand for Stellantis electric vehicles increases, the total capacity will expand.
According to the automaker, the joint venture company will invest over $2.5 billion (€2.3 billion) and create 1,400 new jobs in Kokomo and its surrounding areas. Over time, the investment might increase to $3.1 billion (€2.9 billion). The plant’s construction is expected to start later this year, with production operations beginning in the first quarter of 2025.
Stellantis already has a supplier base in the area. It is also ideally located near many of its Midwest vehicle manufacturing factories.
Carlos Tavares, CEO of Stellantis, said: “Today’s announcement further solidifies our global battery production footprint and demonstrates Stellantis’ drive toward a decarbonized future outlined in Dare Forward 2030.” He also expressed his gratitude to the local government of Kokomo.
“We express our gratitude towards officials from the State of Indiana and Stellantis for supporting the final selection of the plant site in Indiana,” said Yoonho Choi, CEO of Samsung SDI.
“We have secured a solid foothold in a rapidly growing North American EV market through the joint venture with Stellantis. We will make sincere efforts to bring satisfaction to the market with top-class quality products in the future, and we will contribute towards meeting the climate change target.” Choi added.
As part of its Dare Forward 2030 strategic plan, Stellantis has announced plans to have annual global sales of five million battery-electric vehicles by 2030. Additionally, the company’s planned battery capacity was increased by 140 GWh to approximately 400 GWh. This announcement is part of a long-term strategy to invest $35 billion (€30 billion) in electrification through 2025.
