Stellantis, Samsung SDI to Invest Over $2.5 Billion in JV for Lithium-ion Battery Plant in United States

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Stellantis N.V. and Samsung SDI announced that they have executed binding, definitive agreements to establish an electric-vehicle battery manufacturing facility in Kokomo, Indiana.

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Recently, Stellantis N.V. announced that Samsung SDI and Stellantis N.V. have signed binding, definitive agreements for the establishment of an electric-vehicle batteries manufacturing plant in Kokomo (Indiana), U.S. The plant is expected to begin production in 2025. It has an initial production capacity of 23 gigawatthours (GWh) and will grow to 33 GWh over the next few years. As demand for Stellantis electric cars rises, the total capacity will increase.

The joint venture company will invest more than $2.5 billion (EUR2.3billion) and create 1,400 jobs in Kokomo. The potential investment could rise to $3.1 billion (EUR2.9billion). The new facility will supply batteries modules for a variety of vehicles manufactured at Stellantis’ North American assembly plant. Construction activities for the plant are expected to start later in the year, with production operations scheduled to begin in 2025’s first quarter.

Carlos Tavares (CEO of Stellantis), stated that the company had committed to an aggressive electrification strategy less than a year ago. It was anchored by five gigafactories in North America and Europe. Stellantis’ commitment to a decarbonized future, outlined in Dare Forward 2030, is further strengthened by today’s announcement. I am grateful for Governor Holcomb, Secretary Chambers, Mayor Moore, and all their teams, as well as my colleagues, for their support and dedication in bringing this operation to Kokomo. This city has a rich and lengthy history for our company.

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“We thank the State of Indiana officials and Stellantis for their support in the final selection of the plant location in Indiana,” stated YOONHO CHOI chief executive officer of Samsung SDI. Through the joint venture with Stellantis, we have established a strong foothold in North America’s rapidly growing EV market. We will continue to make every effort to satisfy the market with high-quality products and contribute to the global climate change goal.

Governor Holcomb stated, “It’s another exciting day to be back at Kokomo celebrating such an important investment from Stellantis as well as our new partners Samsung.” Holcomb. “Today’s announcement marks another step in positioning Indiana as a leader for mobility, battery technology, and clean energy.”

Brad Chambers, secretary for commerce at the Indiana Economic Development Corporation said that “our goals for Indiana’s economic growth are ambitious.” This significant venture with Stellantis, Samsung SDI, is in keeping with our 5E focus of energy transition and building an economic future. These large-scale investments are proof of Indiana’s business-friendly environment, its workforce strength, and our ongoing investment in quality life. This year’s economic growth and momentum is unmatched”.

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Mayor of Kokomo Tyler Moore said, “We would like thank our partner Stellantis for its continued support, investment, and faith in the community for more than 85 years.” We would like to also thank Samsung SDI, for their trust in us and look forward working together for many more decades. This multi-billion-dollar investment will solidify Kokomo’s position as a global leader for automotive manufacturing.

Samsung SDI, an Indiana-based company, will use its cutting-edge technology PRiMX in the production of EV batteries and modules for North America. Samsung launched PRiMX, its premium battery technology brand, as the industry’s first in last year. The brand was unveiled at CES 2022 in Jan.

Stellantis has announced that it will have five million global battery electric vehicles sold annually by 2030 as part of its Dare Forward 2030 strategic planning. This would represent 100% of European passenger car BEVs and half of North American passenger car and light-duty trucks BEV sales. Stellantis has also increased its planned battery capacity by 140GWh to about 400GWh. This will be supported by five batteries manufacturing plants and additional supply contracts. This announcement is part the global long-term strategy for electrification to invest $35 billion (EUR30billion) in electrification and technology.

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