Stellantis and Samsung SDI to Invest up to $3 Billion to Build a EV Battery Factory in Indiana
【Summary】Automaker Stellantis and Samsung SDI announced on Tuesday that they have executed binding, definitive agreements to establish an electric-vehicle battery manufacturing facility in Kokomo, Indiana, U.S. The joint venture battery factory will include an investment of over $2.5 billion and create 1,400 new jobs in Kokomo and the surrounding region, according to Stellantis.
The United States will soon be home to a half dozen new battery plants. Automakers, Ford Motor Co, General Motors, Hyundai, Volkswagen and Mercedes-Benz all have announced major investments in electric vehicle battery production joint ventures in the U.S. with industry partners for their future models.
The latest automaker is Stellantis, the parent company of the Dodge, Jeep and Ram brands.
Stellantis N.V. and Samsung SDI announced on Tuesday that they have executed binding, definitive agreements to establish an electric-vehicle battery manufacturing facility in Kokomo, Indiana, U.S. The joint venture battery factory will include an investment of over $2.5 billion and create 1,400 new jobs in Kokomo and the surrounding region, according to Stellantis.
Construction is scheduled to begin later this year.
"It's another incredibly exciting day to be back in Kokomo celebrating such a transformational investment from Stellantis and our new partners at Samsung," said Indiana Gov. Eric Holcomb. "Today's announcement is another step toward positioning Indiana as a leader in the future of mobility, battery technology and clean energy."
The plant is targeted to start producing batteries in the first quarter of 2025 with an initial annual production capacity of 23 gigawatt hours (GWh). Once up and running, the plant's output will increase to 33 GWh in the following years as the demand for batteries from Stellantis is expected to rise as the company electrifies its model lineup.
Stellantis says the investments in the facility could increase up to $3.1 billion.
At the Indiana factory, Samsung SDI will assemble its PRiMX (pronounced as Praimax) brand EV battery cells and modules for the North American market. Samsung launched its premium battery technology brand PRiMX in Dec 2021 and unveiled the new line of batteries at CES 2022 in January.
The name PRiMX brand stands for ‘Prime Battery for Maximum Experience.' The battery brand was developed under the three keywords, ‘Absolute Quality,' ‘Outstanding Performance,' and ‘Proven Advantage', according to Samsung.
The new facility will supply battery modules for a range of vehicles produced at Stellantis' North American assembly plants. The automaker operates 11 vehicle manufacturing facilities in North America, including in Canada, and Mexico. Six of these plants are in the U.S. in the states of Michigan, Ohio and Illinois.
"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."
Stellantis' Dare Forward 2030 strategic plan is to have global annual battery electric vehicle sales of five million vehicles by 2030, reaching 100% of passenger vehicles sold in Europe and 50% of passenger car and light-duty truck sales in North America. The company is the world's fourth largest automaker.
Stellantis, which is the world's fourth biggest automaker, also increased planned battery capacity by 140 GWh to approximately 400 GWh across five battery manufacturing plants and additional supply contracts. This announcement is part of the long-term electrification strategy of Stellantis to invest $35 billion through 2025 in electrification and software globally. These plans include converting Chrysler into an all-electric brand by 2028.
Earlier this month, Stellantis announced it was investing $3.6 billion CAD (US$2.8 billion) in its Canadian operations to support the automaker's long-term electrification strategy.
The Indiana plant will also provide Samsung SDI with a production base in North America, joining General Motors' joint venture with battery partner LG Energy Solutions named Ultium Cells LLC and SK Innovation's joint venture with Ford Motor Co called BlueOvalSK.
Ford's global battery electric vehicle (BEV) plan calls for at least 240 gigawatt hours (GWh) of battery cell capacity by 2030. Ford said that approximately 140 GWh will be required in North America, with the balance dedicated to other key regions, including Europe and China.
GM is investing up to $4.6 billion to build two battery plants in Ohio and Tennessee with its partner LG Energy Solutions.
In May 2021, Ford and SK Innovation signed a memorandum of understanding (MoU) to produce approximately 60 GWh annually in battery cells and array modules. Battery production is scheduled to begin by mid-decade, with potential to expand as Ford introduces new electric models.
"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."
The closing is subject to customary closing conditions, including regulatory approvals before construction of the plant begins.
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