South Korea’s Samsung SDI Co. and the Netherlands-based automaker Stellantis N.V. have signed a memorandum of understanding (MOU) to build their second joint battery plant in the US, both companies said on Monday.
The two companies launched a joint venture StarPlus Energy last year to build an electric vehicle battery facility in Kokomo, Indiana with an annual capacity of 33 gigawatt hours (GWh).
The first factory will be up and running in the first quarter of 2025.
Their second EV battery plant is expected to launch production in early 2027, at a capacity of 34 GWh per year.
They did not disclose the size of their investment in the second US facility, but industry officials said they will likely spend about 4 trillion won ($3.1 billion) to build the factory.
Combined, their EV battery output capacity will rise to 67 GWh, enough to power more than 1 million EVs.
Stellantis said the location of the new facility is currently under review. However, it is understood that it will be constructed in the US state of Indiana, near the first battery factory, according to industry officials.
“This new facility will contribute to reaching our aggressive target to offer at least 25 (models of) new battery electric vehicles for the North American market by the end of the decade,” Stellantis CEO Carlos Tavares said in a joint statement.
“We are continuing to add more capacity in the United States together with our great partner Samsung SDI and laying the next steps to reaching our carbon neutrality commitment by 2038.”
Samsung SDI opted to form partnerships with carmakers to penetrate into the US EV battery market to supply products on a stable basis.
“The second plant will accelerate our market penetration into the US and help Stellantis push forward US' transition to an era of electric vehicles by supplying the products featuring the highest levels of safety and quality," said Samsung SDI President and CEO Choi Yoon-ho.
Separately, Samsung SDI is working with General Motors (GM) to establish a JV to manufacture nickel-rich prismatic and cylindrical batteries in the US, the two companies said in April of this year.
They will invest over $3 billion combined in the JV, which will have an annual production capacity of more than 30 GWh and begin mass production in 2026.
The location of their first jointly run battery facility has not yet been disclosed.
