Stellantis, Samsung SDI launch battery production JV
Stellantis N.V. and Samsung SDI have reached binding agreements to establish a production facility for lithium-ion batteries for electrified vehicles. The plant is to be built in Kokomo, Indiana, and will be operational in 2025. The initial annual production capacity of 23 gigawatt hours (GWh) is expected to gradually increase to 33 GWh – if demand for Stellantis electric vehicles continues to grow as expected.
The joint venture will invest more than $2.5 billion and create 1,400 new jobs in Kokomo and surrounding areas. Investment could gradually increase to as much as $3.1 billion. The new facility will supply battery modules for a range of vehicles manufactured at Stellantis’ North American plants. Construction of the plant is expected to begin this year, with production starting in the first quarter of 2025.
“Less than a year ago, we committed to an ambitious electrification strategy based on five Gigafactories in Europe and North America,” said Stellantis CEO Carlos Tavares, “Today’s announcement further strengthens our global presence in battery production.”
At the Indiana plant, Samsung SDI will use its state-of-the-art PRiMX technology to produce battery cells and modules for electric vehicles for the North American market. Samsung launched this technology last year and unveiled it at CES 2022 in January.
At the presentation of its “Dare Forward 2030” strategic plan, Stellantis had announced plans to increase annual sales of battery-electric vehicles to five million worldwide by 2030. In this context, the passenger car-BEV sales mix in Europe will be 100%. In North America, 50% of passenger car and light commercial vehicle sales will be battery-electric. Stellantis also increased its planned battery capacity by 140 GWh to approximately 400 GWh – covered by five gigafactories and complementary supply contracts. This announcement is part of the company’s long-term electrification strategy, which calls for €30 billion in electrification and software investments worldwide by 2025.