Automotive OEM Stellantis N.V. and electric vehicle (EV) battery and materials vendor Samsung SDI will build a second battery manufacturing gigafactory in Kokomo, Indiana.
As part of its StarPlus Energy joint venture, the gigafactory will begin production in early 2027 with an annual capacity expected of 34 gigawatt hours (GWh). Both companies will invest more than $3.2 billion, bringing the total investment in both companies to $6.3 billion.
The first StarPlus Energy gigafactory in Kokomo is already under construction and is slated to be open in the first quarter of 2025 with an annual production capacity of 33 GWh.
“Through 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,” said Yoon-ho Choi, president and CEO of Samsung SDI. “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.”
Why it matters
The automotive industry is continuing its largest transition in its history with OEMs planning to switch to electrified models in the next 10 to 15 years.
To accomplish this major transition, infrastructure will be needed in the form of sufficient volumes of EV batteries as well as EV charging stations that will be needed to meet the demand of all of these new EVs on the road.
For Stellantis, it plans to reach 100% passenger car battery electric vehicle sales mix in Europe and 50% passenger car and electric light duty truck sales mix in the U.S. by 2030. The company seeks to secure 400 GWh of battery capacity by this time frame and to help it become carbon net zero by 2038.
Most automotive OEMs are following suit by building their own EV battery plants as well as striking deals with not just lithium-ion battery manufacturers but materials vendors to secure supply. Some are going as far as to acquire companies they see as a strategic investment that will further their successful transition.
