Stellantis and Samsung to build US$3bn EV battery production plant

LinkedIn +

Automotive manufacturer Stellantis and technology giant Samsung have announced they are teaming up to establish an electric-vehicle battery manufacturing facility in Kokomo, Indiana, US, which could cost in the region of US$3bn.

Targeted to start in 2025, the plant aims to have an initial annual production capacity of 23 gigawatt hours (GWh), with an aim to increase to 33 GWh in the next few years. The total capacity would increase further as demand for Stellantis electric vehicles is expected to rise.

This announcement is part of Stellantis’ long-term electrification strategy to invest US$35bn (€30bn) through 2025 in electrification and software globally. Its Dare Forward 2030 strategic plan is to have global annual battery electric vehicle sales of five million vehicles by 2030, reaching 100% of passenger car BEV sales mix in Europe and 50% passenger car and light-duty truck BEV sales mix in North America.

At the Indiana factory, Samsung SDI will be applying its cutting-edge technology PRiMX to producing EV battery cells and modules for the North American market.

The joint venture company will invest over US$2.5bn (€2.3bn) and create 1,400 new jobs in Kokomo and the surrounding areas. The investment could gradually increase up to $3.1 billion (€2.9bn). The new facility will supply battery modules for a range of vehicles produced at Stellantis’ North American assembly plants. Plant construction activities are scheduled to begin later this year with production operations planned to launch in the first quarter of 2025.

“Just under one year ago, we committed to an aggressive electrification strategy anchored by five gigafactories between Europe and North America,” said Carlos Tavares, CEO of Stellantis. “Today’s announcement further solidifies our global battery production footprint and demonstrates Stellantis’ drive toward a decarbonized future outlined in Dare Forward 2030. I am grateful to Governor Holcomb and Secretary Chambers along with Mayor Moore, and their teams as well as to all my colleagues for their support and dedication to bring this operation to Kokomo, a city that holds a rich and long history for our company.”

“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, chief executive officer 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.”

Elsewhere, Stellantis has also increased planned battery capacity by 140 GWh to approximately 400 GWh, to be supported by five battery manufacturing plants together with additional supply contracts.

Share this story:

About Author

Comments are closed.