Stellantis, the world’s fourth-largest automaker, and Samsung SDI, a leading battery manufacturer, have announced that they will invest over $3.2 billion to build a second electric vehicle (EV) battery plant in Kokomo, Indiana. The new facility, which will be part of the StarPlus Energy joint venture, is expected to create 1,400 new jobs and start production in early 2027.
Kokomo to become a major hub for EV battery production
The new plant will be co-located with the first StarPlus Energy gigafactory, which is currently under construction and scheduled to open by the first quarter of 2025. The combined annual production capacity of the two Kokomo gigafactories will reach 67 gigawatt hours (GWh), making it one of the largest EV battery production bases in North America.
The city of Kokomo, which is about 60 miles north of Indianapolis, has been chosen for its strategic location, skilled workforce, and strong support from the state and local governments. Indiana Governor Eric Holcomb said that the decision “puts Hoosiers squarely at the center of innovating and developing the future of mobility, catalyzing Indiana’s leadership position in tomorrow’s global economy.”
Kokomo Mayor Tyler Moore expressed his gratitude to Stellantis and Samsung SDI for their continued commitment and investment in the community. He said that the new plant will “further solidify Kokomo’s reputation as a leader in advanced manufacturing and technology.”
Stellantis and Samsung SDI to accelerate the transition to EVs
The new gigafactory is the sixth battery facility globally to support Stellantis’ bold electrification plan outlined in Dare Forward 2030. The company aims to sell 5 million EVs by 2030, with 50% of its North American passenger car and light truck sales going fully electric by then. Stellantis also plans a joint-venture battery plant across the border in Windsor, Ontario.
Stellantis COO for North America Mark Stewart said that the battery ecosystem is the foundation of their electrification strategy and that their partners Samsung SDI, the State of Indiana, and the City of Kokomo have created a compelling case for locating their sixth gigafactory in Kokomo. He added that “the BEVs 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 SDI President and CEO Yoon-ho Choi said that through the construction of the second battery plant of StarPlus Energy, Samsung SDI will be establishing its largest production base for EV batteries in North America. He said that he expects Stellantis brand vehicles powered by Samsung SDI batteries featuring supreme technologies to contribute to accelerating the U.S. transition to an era of EVs.
Indiana offers incentives for EV battery development
Indiana has offered an incentive package of up to about $186.5 million in conditional tax credits, training grants and investments for the first Kokomo battery factory. The money would offset the costs of the plant’s infrastructure, according to the Indiana Economic Development Corporation.
The state has also been supporting other EV-related projects in recent years. In 2021, Stellantis announced plans to spend nearly $230 million to retool three Kokomo-area factories so they can produce transmission systems that work with both traditional gasoline-powered vehicles and gas-electric hybrid versions.
Indiana is also home to several other EV manufacturers and suppliers, such as Rivian, BrightVolt, Cummins, Allison Transmission, Delphi Technologies and BorgWarner.
