Stellantis NV (NYSE:STLA, EPA:STLA) has announced it will build its second US battery manufacturing facility in Kokomo, Indiana as part of its StarPlus Energy joint venture with Samsung SDI.
The Jeep and Chrysler maker said the new plant is expected to begin production in early 2027 with an annual capacity of 34 gigawatt hours (GWh).
The joint venture company will invest over $3.2 billion and create 1,400 new jobs in Kokomo and the surrounding areas.
This will be the second StarPlus Energy gigafactory in Kokomo. Construction is already underway on the first StarPlus Energy gigafactory, which is on track to open by the first quarter of 2025 with an annual production capacity of 33 GWh, the companies said.
The total investment for both facilities will be over $6.3 billion, creating a total of 2,800 new jobs.
“Our battery ecosystem is the foundation of our electrification strategy and our great partners Samsung SDI, the State of Indiana, and the City of Kokomo have created a compelling case for locating our sixth gigafactory in Kokomo,” commented Stellantis chief operating officer for North America, Mark Stewart.
“The BEVs (battery electric vehicles) coming to our North America brands play an important role in our drive to offer clean, safe and affordable mobility for all and achieve the bold goal of carbon net zero by 2038.”
Samsung president and CEO Yoon-ho Choi added:“We expect Stellantis brand vehicles powered by Samsung SDI batteries featuring supreme technologies to contribute to accelerating the U.S. transition to an era of electric vehicles.”
As part of its Dare Forward 2030 strategic plan, Stellantis is targeting a 100% passenger car BEV sales mix in Europe and 50% passenger car and light-duty truck BEV sales mix in the US by 2030.
To meet these sales targets, it is securing roughly 400 GWh of battery capacity.
The automaker says it is on track to become a carbon net zero corporation by 2038, all scopes included, with single-digit percentage compensation of remaining emissions.
Its New York-listed shares were up 2.5% at $20.08 ahead of the opening bell.
Contact the author at stephen.gunnion@proactiveinvestors.com