Stellantis, Samsung to invest $2.5 billion in Indiana EV battery plant

Stellantis CEO Carlos Tavares holds a information convention right after conference with unions, in Turin, Italy, March 31, 2022.

Massimo Pinca | Reuters

Automaker Stellantis plans to invest additional than $2.5 billion in partnership with Samsung SDI to develop the automaker’s initial U.S. electric vehicle battery manufacturing facility

The businesses on Tuesday declared the new plant will be found in Kokomo, Indiana, where by Stellantis presently has a provider foundation. It’s also centrally positioned to quite a few of its automobile assembly crops in the Midwest.

Stellantis stated the new facility will provide lithium-ion battery modules for a selection of automobiles. Plant construction is scheduled to start out later on this year, with production projected to launch in the to start with quarter of 2025. The plant is predicted to produce 1,400 new positions.

The new facility is section of Stellantis’ purpose to obtain globally annual income of 5 million battery-electric powered motor vehicles by 2030, bolstered by a program to make investments $35 billion in electrification and supporting systems by 2025.

The facility, which will be operated by means of a joint undertaking, adds to a wave of tens of billions of pounds announced by automakers in modern many years for U.S. creation of electric motor vehicles and batteries to power them.

Hyundai Motor on Friday confirmed ideas to shell out $5.54 billion to establish its very first dedicated electrical vehicle and battery production amenities in Ga. Some others, this kind of as Standard Motors, Ford Motor and Volkswagen, have declared equivalent U.S. investments.

The current commitments are notable wins for the Biden administration, which has been urging companies to build electrical car or truck supply chains and creation in the U.S. alternatively than abroad. President Joe Biden very last 12 months established a target for EVs to represent fifty percent of all new auto revenue in the state by 2030.

Stellantis formerly declared plans for 5 battery crops, or gigafactories, in Europe and North The usa. In March, Stellantis and LG Power Alternative claimed they would invest $4.1 billion for a joint undertaking plant in Canada that is predicted to occur on the net in 2024.

Stellantis – the world’s fourth-biggest carmaker – was shaped by the merger of Fiat Chrysler and France-based mostly Groupe PSA in January 2021. It has 14 particular person vehicle manufacturers, together with Alfa Romeo, Chrysler, Dodge, Fiat, Jeep and Peugeot.