Automaker Stellantis N.V. and Samsung SDI have finalised plans to build a lithium-ion electric-vehicle battery module manufacturing facility in Indiana, US.
The binding, definitive agreement aims to begin production at the 23GWh plant in the first quarter of 2025— with plans to increase capacity to 33GWh in the “next few years”.
The plant will be the South Korean firm Samsung’s first of its kind in the US.
The Indiana factory will use Samsung’s PRiMX technology to produce EV battery cells and modules for the North American market.
The joint venture company will invest more than $2.5 billion (and could increase up to $3.1 billion) and create 1,400 new jobs in Kokomo and the surrounding areas.
The new facility will supply battery modules for vehicles produced at Stellantis’ North American assembly plants.
Plant construction activities are scheduled to begin later this year.
EV sales growth plan
As part of its Dare Forward 2030 strategic plan, Stellantis aims to sell five million EVs a year by 2030.
To reach this goal, Stellantis has also increased its planned battery capacity by 140GWh to around 400GWh, to be supported by five battery manufacturing plants together with additional supply contracts.
Carlos Tavares, CEO of Stellantis (pictured), said: “Just under one year ago, we committed to an aggressive electrification strategy anchored by five gigafactories between Europe and North America.
“Today’s announcement further solidifies our global battery production footprint and demonstrates Stellantis’ drive toward a decarbonized future outlined in Dare Forward 2030.”
The closing is subject to customary closing conditions, including regulatory approvals.
Global battery focus
In May, materials firm Umicore signed a long-term, strategic-supply agreement for lithium-ion battery cathode materials with Automotive Cells Company (ACC) for its planned gigafactories in France, Germany and Italy with high nickel cathode materials from its plant in Nysa, Poland.
ACC is a joint company between Stellantis, Mercedes-Benz and TotalEnergies (together with its subsidiary Saft).
Last October, Stellantis NV and battery manufacturer LG Energy Solution entered a Memorandum of Understanding (MoU) to build a 40GWh battery plant in North America.
The joint venture between the firms is called NextStar Energy and has appointed Danies Lee as chief executive officer (CEO) of the new company.
NextStar was due to break ground in Q2 of this year, and the plant is expected to start production by Q1 of 2024.
The battery cells and modules produced at the facilities are intended to supply Stellantis’ assembly plants in US, Canada and Mexico.
They will be installed in a range of EVs, including hybrid plug-in and full electric vehicles that will be sold under the Stellantis brand family, which include Peugeot, Fiat, Opel, Jeep and Ram.
