Stellantis, the multinational automotive corporation, and South Korea’s Samsung SDI have unveiled plans to establish their second electric vehicle (EV) battery plant in Kokomo, Indiana with an investment of $3.2 billion.
This strategic move is poised to significantly bolster the companies’ EV production capacity and fortify their presence in the burgeoning EV market.
The new StarPlus Energy plant is expected to begin production in early 2027 with an annual capacity of 34 gigawatt hours (GWh). The joint venture company will invest over $3.2 billion (€2.8 billion) and create 1,400 new jobs in Kokomo and the surrounding areas. The total investment for both facilities will be over $6.3 billion (€5.5 billion) and create 2,800 total new jobs.
This will be the second StarPlus Energy gigafactory in Kokomo. Construction is already underway on the first StarPlus Energy gigafactory, which is on track to open by the first quarter of 2025 with an annual production capacity of 33 GWh.
The anticipated battery factory, scheduled to commence operations in 2027, holds promise for creating employment opportunities for approximately 1,400 workers within the region. Once operational, the facility is projected to achieve a combined annual production capacity of an impressive 67 gigawatt hours (GWh), as affirmed by Samsung SDI in a recent statement.
The duo’s first joint plant, already in the pipeline, is slated to commence production as early as the first quarter of 2025. This development underscores their commitment to expeditiously advancing their EV endeavors.
The announcement comes amidst ongoing challenges for Stellantis, the parent company of prominent automobile brands like Chrysler, Jeep, and Ram, due to persistent losses caused by a nearly four-week-long strike staged by the United Auto Workers at a Jeep plant in Toledo, Ohio, and various parts depots across the United States.
Notably, the decision to establish a second U.S.-based battery plant is instrumental for Stellantis in adhering to the domestic content requirements stipulated by the U.S. Inflation Reduction Act, critical for federal EV subsidies.
In line with its broader sustainability goals, Samsung SDI disclosed its intention to invest a substantial amount of 2.7 trillion won (approximately $2.01 billion) towards the establishment of this second joint battery plant in collaboration with Stellantis.
Stellantis, renowned for its diverse brand portfolio including Peugeot, Jeep, Ram, Alfa Romeo, Citroen, and Opel, has previously announced ambitious targets of achieving 100 percent electric passenger car sales in Europe and a 50 percent electric mix for cars and light trucks in the U.S. by 2030. To materialize these aspirations, the company aims to secure an estimated 400 GWh of battery capacity.
This strategic alliance and investment underscore the collective determination of Stellantis and Samsung SDI to pioneer advancements in the EV sector, align with global sustainability initiatives, and drive the transition towards a greener automotive future.