Samsung SDI Co. And Stellantis N.V. Will Spend More Than $2.5 Billion on a Joint Venture in The United States to Build a Lithium-Ion Battery Manufacturing Facility!
As the carmaker accelerates its transition to electric cars, Stellantis and South Korean battery producer Samsung SDI will spend $2.5B on a battery factory in Kokomo, Indiana.
When it opens in 2025, Samsung’s first US battery facility will have an annual production of around 23-gigawatt hours, with the capacity eventually increasing to 33-gigawatt hours, according to the firms. In and around Kokomo, where Stellantis already has engine and transmission plants, the project will create 1,400 new jobs. The location is about midway between the automaker’s Illinois and Ohio vehicle production sites.
As automakers such as General Motors Co. and Ford Motor Co. electrify their fleets and President Joe Biden attempts to support the technical move, competition among battery producers to build up capacity is heating up in North America.
After the mega-merger between Fiat Chrysler and PSA Group last year, Stellantis Chief Executive Officer Carlos Tavares is scrambling to modernize the huge automaker. Stellantis is building five major battery facilities spanning North America and Europe to generate 400-gigawatt hours of capacity by 2030 as part of its electrification strategy.
According to the corporation, Stellantis already employs roughly 7,000 people in Indiana in its engine, transmission, and casting factories, including 6,300 members of the United Automobile Workers union. The manufacturer stated that future hourly workers at the battery facility will have the ability to organize a union.
Future workers have the chance to vote for their representative status in secret ballot elections, according to spokesperson Jodi Tinson.
The UAW hopes to achieve a deal that “brings this new facility within our master agreement with typical salaries and benefits,” according to Cindy Estrada, director of the union’s Stellantis department.
Last October, Stellantis and Samsung decided to create a joint venture to develop a battery facility in the United States. Samsung controls 51% of the company, while Stellantis owns 49%, and their combined investment in the Indiana facility may exceed $3.1 billion.
The Indiana Economic Development Corporation has announced a $186.5 million commitment to the project, which includes tax credits, training grants, infrastructure upgrades, and performance-based incentives. Additional incentives are being offered by Howard County, Duke Energy Indiana, Northern Indiana Public Service Company, and Greater Kokomo Economic Development Alliance, according to the IEDC.
Stellantis, the parent company of Jeep, Peugeot, and Ram, has committed to selling 5 million battery-electric vehicles by 2030. By that time, it hopes to have sold all of its European passenger cars and half of its North American car and truck sales as plug-in hybrids or entirely battery-powered vehicles.
Stellantis and Samsung competitor LG Energy Solution launched a $4.1 billion joint venture in March to establish a new electric car battery facility in Windsor, Canada.