Automotive firm Stellantis N.V. and Samsung SDI have signed binding, definitive agreements to form a joint venture to establish an EV battery manufacturing facility in Kokomo, Indiana.
The new facility will use Samsung SDI’s PRiMX technology to manufacture EV battery cells and modules, specifically for the North American market. The battery modules will be used in the vehicles manufactured at Stellantis’ North American assembly plants.
A total of $2.5 billion will be invested in the new EV battery facility. Gradually, the firms will increase this investment to $3.1 billion.
Construction of the new plant is expected to begin later in 2022 and production is expected to launch in the first quarter of 2025.
“Just under one year ago, we committed to an aggressive electrification strategy anchored by five gigafactories between Europe and North America,” said Carlos Tavares, CEO of Stellantis. “Today’s announcement further solidifies our global battery production footprint and demonstrates Stellantis’ drive toward a decarbonized future outlined in Dare Forward 2030.”
As part of the Dare Forward 2030 strategic plan, Stellantis announced plans to have global annual battery electric vehicle sales of five million vehicles by 2030, reaching 100% of passenger car BEV sales mix in Europe and 50% passenger car and light-duty truck BEV sales mix in North America. Stellantis also increased planned battery capacity by 140 GWh to approximately 400 GWh, to be supported by five battery manufacturing plants together with additional supply contracts.
