Stellantis and Samsung SDI announced on Tuesday that they will partner to build a $2.5 billion lithium-ion battery factory in Indiana.
The project, which will create 1,400 new jobs and could exceed the $3 billion mark when completed, is Stellantis’ first battery plant in the United States and fifth in the world.
The latest plant is slated to open in 2025 near Stellantis’ engine, casting and transmission plants in Kokomo, Indiana, where the company is also investing $229 million to produce eight-speed electrified transmissions to help achieve its goal of having electric vehicles account for more than half of its U.S. sales by 2030.
The news comes a day after Hyundai’s blockbuster announcement that it plans to invest $10 billion in mobility innovation in North America through 2025, including $5.5 billion in a electric vehicle plant and a battery manufacturing plant outside of Savannah, Georgia. This project represents the largest economic development deal ever recruited by the Peach State.
Stellantis’ joint venture with the South Korean battery maker in Indiana will support the global juggernaut’s goal of increasing production of electric vehicles. Chrysler’s parent company is investing more than $35 billion in electrification, software and technology through 2025, and plans to launch more than 75 new battery-electric models, including 25 nameplates in the United States and the United States. Canada, by 2030.
Stellantis announced plans in March to invest $4.1 billion in a separate lithium-ion battery joint venture with LG Energy Solution. This plant is expected to open in Windsor, Ontario in 2024.
The new Kokomo battery plant will have an initial annual production capacity of 23 gigawatt hours, with the possibility of increasing to 33 gigawatt hours in the future, said Mark Stewart, COO of Stellantis North America.