Stellantis and Samsung SDI announced plans on Wednesday to invest $3.2 billion in a new electric vehicle battery factory in Kokomo, Indiana. This is Stellantis’ sixth battery factory in the world and its second in the United States. The two companies formed a joint venture called StarPlus Energy and have begun construction of the first battery factory in the United States, also in Kokomo.
The second plant is expected to come on stream in early 2027, with an annual production capacity of 34 gigawatt hours (GWh). The companies said the total investment in the two factories will exceed $6.3 billion and create a total of 2,800 new jobs.
Stellantis said that its first StarPlus Energy super factory is already under construction and is expected to open in the first quarter of 2025, with an annual production capacity of 33GWh.
Mark Stewart, chief operating officer of Stellantis North America, said: "The battery ecosystem is the foundation of our electrification strategy, and excellent partners Samsung SDI, the state of Indiana and the city of Kokomo create a compelling case for our sixth Gigafactory in Kokomo. Our North American brand's pure electric vehicles play an important role in our ambition to provide clean, safe and affordable mobility for everyone and achieve net zero carbon by 2038."
Stellantis and Samsung SDI revealed plans to build a second battery cell in July, but did not disclose the location or other details. Wednesday's announcement, while in line with expectations, comes at a precarious time for Stellantis as the company continues to negotiate with striking autoworkers. The UAW strike, which also affects General Motors and Ford, is entering its fourth week.
The battery plant and the thousands of workers expected to staff it are a focus of the United Auto Workers union, which believes the automakers intend to create these low-wage jobs.
Last week, the UAW led by Shawn Fain secured a major concession from General Motors, which agreed to include future electric vehicle battery work in any new national agreement. The group is currently seeking the same deal from Ford and Stellantis -- automakers that, like General Motors, are moving away from internal combustion engines and toward electric vehicle portfolios.
Stellantis said it hopes that by 2030, the sales proportion of pure electric vehicles for European passenger cars will reach 100%, and the sales proportion of pure electric vehicles for passenger cars and light trucks in the United States will reach 50%.