Jeep maker Stellantis to build $2.5 billion EV battery plant in Indiana

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  • Automaker Stelantis plans to invest more than $2.5 billion in partnership with Samsung SDI to build the automaker’s first US electric vehicle battery manufacturing facility.
  • The companies announced Tuesday that the new plant will be located in Kokomo, Indiana, where Stelantis already has a supplier base.
  • The new facility is part of Stelantis’ goal of achieving annual sales of 5 million battery-electric vehicles by 2030.

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Automaker Stelantis plans to invest more than $2.5 billion in partnership with Samsung SDI to build the automaker’s first US electric vehicle battery manufacturing facility.

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The companies announced Tuesday that the new plant will be located in Kokomo, Indiana, where Stelantis already has a supplier base. It is also located in the center of many of its vehicle assembly plants in the Midwest.

Stelantis said the new facility will supply lithium-ion battery modules for a range of vehicles. Construction of the plant is scheduled to begin later this year, with production expected to begin in the first quarter of 2025. The plant is expected to create 1,400 new jobs.

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The new facility is part of Stelantis’ goal to achieve annual sales of 5 million battery-electric vehicles by 2030, strengthened by plans to invest $35 billion in electrification and assistive technologies by 2025.

The facility, which will be operated through a joint venture, adds to a wave of billions of dollars announced in recent years by automakers for US production of electric vehicles and batteries to power them.

Hyundai Motor on Friday confirmed plans to spend $5.54 billion to build its first dedicated electric vehicle and battery manufacturing facilities in Georgia. Others such as General Motors, Ford Motor and Volkswagen have announced similar US investments.

The recent commitments are a notable victory for the Biden administration, which is urging companies to establish electric vehicle supply chains and production in the US rather than overseas. President Joe Biden last year set a target for EVs to represent half of all new auto sales in the country by 2030.

Stelantis previously announced plans for five battery plants, or gigafactories, in Europe and North America. In March, Stelantis and LG Energy Solutions said they would invest $4.1 billion for a joint venture plant in Canada, which is expected to come online in 2024.

Stelantis – the world’s fourth largest carmaker – was created in January 2021 by the merger of Fiat Chrysler and France-based Groupe PSA. It has 14 individual auto brands including Alfa Romeo, Chrysler, Dodge, Fiat, Jeep and Peugeot.

Credit: www.cnbc.com /

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