Stellantis, Samsung SDI to Invest $3.2B for EV Battery Facility in Indiana

Stellantis and Samsung SDI announced they are building a new plant for electric vehicle batteries. They also revealed the plans to invest more than $3.2 billion for the project.

This new EV battery manufacturing factory is Stellantis’ sixth facility worldwide. As per CNBC, the automaker’s announcement of its latest project with Samsung SDI was made on Wednesday, Oct. 12, shortly after making progress in labor negotiations with the United Auto Workers union led by the group’s president Shawn Fain.

Stellantis picks Indiana for the Plant Construction

For its battery joint venture with Samsung SDI, Stellantis selected Kokomo, Indiana, as the site for their factory. The firm said the facility will generate about 1,400 jobs for the locals, and full production of EV batteries is expected to begin in 2027.

Associated Press News reported that Indiana’s Kokomo City is located around 60 miles north of Indianapolis, and the Netherlands-headquartered vehicle manufacturer sees this location as the perfect choice for the project.

Moreover, the state of Indiana also offered incentives to Stellantis and Samsung SDI’s joint venture. The package includes up to $186.5 million in conditional tax credits, investments, and training grants.

Stellantis’ Second Battery Facility

This will be Stellantis' second battery plant proposal in the territory. The two facilities are projected to create a total of 2,800 new jobs.

“Our battery ecosystem is the foundation of our electrification strategy and our great partners Samsung SDI, the State of Indiana, and the City of Kokomo have created a compelling case for locating our sixth gigafactory in Kokomo,” Stellantis North America’s chief operating officer, Mark Stewart, said in a press release. “The BEVs coming to our North America brands play an important role in our drive to offer clean, safe, and affordable mobility for all and achieve the bold goal of carbon net zero by 2038.”

Samsung SDI’s president and CEO, Yoon Ho Choi, added, “Through the construction of the second battery plant of StarPlus Energy, Samsung SDI will be establishing its largest production base for electric vehicle batteries in North America. We expect Stellantis brand vehicles powered by Samsung SDI batteries featuring supreme technologies to contribute to accelerating the U.S. transition to an era of electric vehicles.”

Photo by: Stellantis Press Release