Samsung SDI has secured a $1 billion (1.5 trillion won) battery supply deal for energy storage systems (ESS) to a U.S.-based energy firm whose name has not yet been made public. The prismatic batteries will be manufactured at the StarPlus Energy battery facility in Indiana, a joint venture between Samsung SDI and Stellantis that serves as an important node for the automaker’s electrification strategy.

What Does the Battery Deal Mean for Samsung SDI?

The Samsung SDI battery deal also shows how the Indiana plant, originally planned for electric vehicles (EV) batteries, could also serve the growing grid-scale energy storage systems (ESS) markets. The said markets are seeing an increase in interest mainly driven by expanding renewable energy capacity and AI-related electricity demand. Samsung SDI also indicated that the facility will initially produce Nickel-Cobalt-Aluminum (NCA) battery cells, with plans to expand into lithium iron phosphate (LFP) products later in the supply contract running through 2029.

The contract also cements the importance of the StarPlus Energy gigafactory complex in Kokomo, Indiana, which is expected to become one of the largest EV battery manufacturing hubs in North America. The facility will also benefit from America’s largest lithium mining project in Nevada, the Thacker Pass lithium project. “The scale of development here is remarkable and a testament to the hardworking men and women building this facility.” The remarks were noted after the governor had visited the site earlier last week on Friday. 

Stellantis-Samsung SDI Battery Plant Project, Indiana

The battery manufacturing project forms a key part of Stellantis’ “Dare Forward 2030” electrification strategy, aimed at scaling EV production globally and securing localized battery supply chains in North America. Through the StarPlus Energy joint venture, Stellantis partnered with Samsung SDI to develop a multi-facility lithium-ion battery manufacturing campus in Kokomo, Indiana, historically a major automotive manufacturing center.

Demand for EV batteries in North America is also rising as automakers accelerate the shift to electrified vehicles. This is supported by federal incentives under U.S. industrial and clean-energy policy. The Kokomo gigafactory complex will also supply batteries directly for Stellantis EVs assembled across the region while also supporting emerging grid-scale energy storage markets.

Project Financing

The StarPlus Energy battery manufacturing plant – at the center of Samsung SDI battery deal – represents one of the largest EV supply-chain investments in the U.S. Midwest.

Key financial and investment figures:

• Over $6.3 billion total investment for two battery plants at the Kokomo site.
• More than $2.5 billion initial investment for the first battery facility.
• About $3.2 billion investment planned for the second gigafactory.
• $7.5 billion U.S. Department of Energy loan financing arranged for the joint venture to scale production capacity.

Project Factsheet for StarPlus Energy EV Battery Manufacturing Complex

Location: Kokomo, Indiana

Developers: Stellantis and Samsung SDI

JV company: StarPlus Energy

Investment: More than $6.3 billion across two plants

Battery type: Lithium-ion EV cells (with NCA and future LFP variants)

First plant capacity: 23 GWh initially, expandable to about 33 GWh

Second plant capacity: 34 GWh annually

Combined capacity: About 67 GWh per year

Production start:

• Plant 1 in Q1 2025
• Plant 2 targeted 2027

Employment: Approximately 2,800 jobs across both facilities

Output potential: Enough batteries for roughly 670,000 EVs annually

Project Team and Key Stakeholders

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.