Samsung SDI Co., the world’s sixth-largest battery maker, and Dutch-domiciled multinational automaker Stellantis N.V. picked the state of Indiana as a site for a joint electric vehicle battery plant in the US, Reuters reported on Monday.
Last October, the Samsung Group unit and the world’s No. 4 carmaker, created through the merger between the Italian-American conglomerate Fiat Chrysler Automobiles and the French PSA Group, partnered to build a multi-billion-dollar battery factory in the world’s third-largest EV market.
Samsung SDI and Stellantis are scheduled to sign a deal this week in Indiana for the facility, which is reportedly to cost more than 2 trillion won ($1.6 billion).
The South Korean battery manufacturer aims to produce 23 gigawatt hours (GWh) of prismatic battery cells and modules a year at the plant, its first US battery production facility, from the first half of 2025 for Stellantis’ car factories in North America. The output is enough for about 300,000 EVs that can drive 500 kilometers (311 miles) with a single charge.
Samsung SDI and Stellantis plan to expand the battery plant’s capacity to 40 GWh a year with additional investment in the future.
TO BE LOCATED IN KOKOMO
The factory is expected to be built near Stellantis engine, casting and transmission plants in Kokomo, Indiana. Those plants may be converted into EV facilities since the eco-friendly vehicles do not need engines and transmissions, some industry sources speculated.
Stellantis produces the Jeep, Dodge Ram brands in eight assembly plants in the US including ones in Michigan, the home to the US auto industry.
The Detroit News reported Indiana won the investment from Samsung SDI and Stellantis, beating Michigan, as the state provided more incentives.
Stellantis plans to build two battery plants in North America and three in Europe to secure batteries of 400 GWh a year by 2030.
It partnered with LG Energy Solution Ltd., the world’s second-largest battery maker, to establish a joint battery factory in Ontario, Canada, to produce 45 GWh per year with an investment of $4.1 billion. The plant is scheduled to begin mass production in 2024.
