Stellantis, a global automaker with its North American headquarters in Auburn Hills, announced with Samsung SDI a definitive and binding agreement to establish a $2.5 billion electric vehicle (EV) battery manufacturing facility in Kokomo, Ind. Michigan had been competing for the project.
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 following few years. The total capacity would increase further as demand for Stellantis electric vehicles is expected to rise.
“Just under one year ago, we committed to an aggressive electrification strategy anchored by five gigafactories between Europe and North America,” says Carlos Tavares, CEO of Stellantis. “Today’s announcement further solidifies our global battery production footprint and demonstrates Stellantis’ drive toward a decarbonized future as outlined in Dare Forward 2030.”
The joint venture company’s investment could gradually increase to up to $3.1 billion and will create and expected 1,400 jobs. The new facility will supply battery modules for a range of vehicles produced at Stellantis’ North America assembly plants. Plant construction activities are scheduled to begin later this year with production operations planned to launch in the first quarter of 2025.
“We express our gratitude toward officials from the state of Indiana and Stellantis for supporting the final selection of the plant site in Indiana,” says Yoon-Ho Choi, CEO of South Korea’s Samsung SDI.
“We have secured a solid foothold in a rapidly growing North America 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 toward meeting the climate change target.”
At the factory, Samsung SDI will be apply its PRiMX technology to produce EV battery cells and modules for the North America market. Last year, Samsung launched its premium battery technology brand PRiMX as an industry first and unveiled the brand at CES 2022 in January.
“Our goals for the growth of Indiana’s economy are ambitious. This significant venture with Stellantis and Samsung SDI is squarely in line with our 5E focus on the energy transition and building an economy of the future,” says Brad Chambers, secretary of commerce for the Indiana Economic Development Corporation (IEDC).
“Large-scale investments like this are a testament to Indiana’s business-friendly climate, its strong workforce, a growing population and our continued investment in quality of life. The economic growth and momentum in our state this year is unprecedented.”
The closing is subject to customary closing conditions, including regulatory approvals.