Stellantis and Samsung SDI have announced their plans to invest $3.2 billion into the construction of a new electric vehicle (EV) battery plant in Kokomo, Indiana. This joint venture, known as StarPlus Energy, is set to build Stellantis’ second battery factory in the United States and will further solidify their presence in the growing EV market.
Key Takeaway
- Stellantis and Samsung SDI will invest $3.2 billion in building a second EV battery factory in Kokomo, Indiana.
- This joint venture, known as StarPlus Energy, aims to support Stellantis’ electrification strategy and bolster the company’s presence in the growing EV market.
- The investment includes the construction of a second battery plant, which is expected to commence operations in early 2027 with an annual capacity of 34 GWh.
- The battery plants are a significant concern for the United Autoworkers, who are negotiating for higher wages for workers in these facilities.
- Stellantis is committed to achieving a 100% EV sales mix in Europe and a 50% sales mix in the United States by 2030.
Stellantis’ Battery Expansion Strategy
Under the StarPlus Energy joint venture, Stellantis and Samsung SDI have already begun building their first US battery plant, also located in Kokomo. The second factory, expected to commence operations by early 2027, will have an annual capacity of 34 gigawatt hours (GWh). This significant investment in both factories, totaling more than $6.3 billion, will result in the creation of 2,800 new jobs.
Stellantis aims to establish a robust battery ecosystem to support its electrification strategy. The company acknowledges the pivotal role that battery electric vehicles (BEVs) will play in offering clean, safe, and affordable mobility. By expanding their battery production capabilities, Stellantis is driving towards a carbon net-zero future by 2038.
Implications and Challenges
While Stellantis and Samsung SDI’s plan to construct a second battery factory does not come as a surprise, the announcement coincides with ongoing negotiations with striking autoworkers. The strike, affecting GM, Ford, and Stellantis, has been ongoing for four weeks, with battery plants at the center of the United Autoworkers’ concerns.
The United Autoworkers’ primary objective is to secure higher wages for workers in battery plants, which they argue are currently filled with low-wage jobs. Just last week, GM agreed to include future jobs in EV battery production in their national agreement with the UAW, setting a precedent for other automakers to follow suit.
Stellantis’ Electrification Goals
Stellantis has outlined ambitious targets for its transition to electric vehicles. The company aims to achieve a 100% passenger-car battery-electric vehicle sales mix in Europe and a 50% sales mix for passenger cars and light-duty trucks in the United States by 2030. By strategically investing in battery factories, Stellantis is positioning itself to meet these targets and effectively contribute to the global shift towards sustainable transportation.
