Stellantis and its long-term battery partner Samsung SDI are advancing plans for a second electric vehicle (EV) battery manufacturing facility in Kokomo, Indiana, under their joint venture StarPlus Energy. Announced in October 2023, this second gigafactory is being developed adjacent to the first EV battery plant and is expected to begin production in early 2027. The battery making plant with have an initial annual capacity of 34 gigawatt-hours (GWh). Stellantis’ Indiana battery factory with a combined capacity of  about 67 GWh per year is also at the center of Samsung SDI’s latest US $1 billion battery supply deal. The project is also backed by more than US $3.2 billion in investment and will create around 1,400 new jobs.

Stellantis announces second EV battery factory in Indiana

Reported October 13, 2023 – Jeep maker Stellantis says it will build a second electric vehicle battery factory in Kokomo, Indiana, that will create 1,400 new jobs. The $3.2 billion joint venture plant with South Korea’s Samsung SDI is to start production early in 2027. Construction already is underway on the companies’ first joint venture factory in Kokomo, which is scheduled to open early in 2025. That $3.1 billion plant announced in May of 2022 will also create about 1,400 new jobs.

The city of Kokomo, which is about 60 miles (97 kilometers) north of Indianapolis, made a compelling case to locate the second factory there. This is according to Stellantis Chief Operating Officer for North America Mark Stewart said in a statement early Wednesday.

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Samsung SDI CEO Yoon-ho Choi said Kokomo will be the company’s largest production base for electric vehicle batteries in North America. He also says it will help Stellantis accelerate a transition to a new era of EVs.

“Today’s commitment from Stellantis and Samsung SDI will also double the capital investment. The new jobs created, and the impact this joint venture will have on Kokomo and the state of Indiana will last for decades to come.”, Indiana Governor Eric Holcomb also said in a statement.

Additionally, Stellantis, the world’s fourth-largest automaker, announced plans to sell 5 million electric vehicles by 2030. This is with 50% of its North American passenger car and light truck sales going fully electric by 2030.

Stellantis also plans a joint-venture battery plant across the border in Windsor, Ontario. The company came together in 2021 with the merger of Fiat Chrysler and France’s PSA Peugeot.

Details on the financing for Stellantis battery factory in Indiana

Indiana offered an incentive package of up to about $186.5 million. This covered conditional tax credits, training grants and investments for the first Kokomo battery factory. The money would also offset the costs of the plant’s infrastructure, the Indiana Economic Development Corporation said.

In 2021 the company announced plans to spend nearly $230 million to retool three Kokomo-area factories. The investment’s aimed for the production of transmission systems that work with both traditional gasoline-powered vehicles and gas-electric hybrid versions.

Who is behind construction of Stellantis battery factory in Indiana

Developers

• Stellantis as JV partner, EV manufacturer and end-user of battery cells
• Samsung SDI as battery technology developer and manufacturing partner
• StarPlus Energy – JV entity developing and operating the Indiana plant

Engineering

• PEA Group – Civil engineering and land surveying contractor for the StarPlus Energy battery manufacturing plant.
• SMRT, Inc. – Cleanroom/dryroom envelope design and engineering services provider.

Construction

• Commercial Contracting Corporation (CCC) – Design-build construction partner for the battery gigafactory complex.
• Motor City Electric Co. – Main electrical contractor for primary battery facility construction.
• Stelko Electric Inc. – Subsidiary/specialty partner working under the Motor City Electric scope.

Financing and Economic Partners

• U.S. Department of Energy – Loan financing for the battery manufacturing program
• Indiana Economic Development Corporation – State economic development incentives and project facilitation
• City of Kokomo – Local government host city
• Korea East-West Power – Energy collaboration partner in related battery-energy storage initiatives