December 23, 2024

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Corporate logos of Stellantis and Samsung SDI (Samsung SDI)

Samsung SDI said Monday it is poised to build a second electric vehicle battery manufacturing plant with Stellantis in the US, ramping up its investment in the all-important EV market.

The two signed a memorandum of understanding to set up the plant under StarPlus Energy, a joint venture of Samsung SDI and Stellantis, with an initial annual production capacity of 34 gigawatt hours. It is slated to start production in 2027. The location of the plant has yet to be decided.

The Korean battery maker’s first US production base and the first joint battery plant with Stellantis in Kokomo, Indiana, is expected to have an annual production of 33 GWh, up from the initial target of 23 GWh. Its commercial operation is scheduled to start in the first quarter of 2025. The two plants’ combined production capacity comes to a total of 67 GWh.

“After setting up a joint venture with Stellantis last year, we laid a solid foundation for expanding our presence in the North American EV market,” said Samsung SDI President and CEO Choi Yoon-ho. “The second plant will bolster our US business and help Stellantis drive the US’ EV transition by supplying (battery) products with the highest level of safety and the best quality.”

The new production facility will be able to supply at least 25 new types of battery-powered EVs in North America by 2030, according to Stellantis CEO Carlos Tavares, in a statement. Tavares also hinted that the two companies will further expand production in the US.

In a move to make all of its sales in Europe for passenger cars electric models, and 50 percent of all sales a mixture of EVs and electrified light-duty trucks in the US by 2030, Stellantis is securing approximately 400 GWh of annual battery capacity worldwide. Samsung SDI is expected to take part in covering the production of roughly 16.7 percent.

In April, the battery maker announced it has agreed to invest more than $3 billion in constructing an EV battery manufacturing plant with General Motors with a targeted annual production capacity of over 30 GWh. It was later unveiled that the plant will be constructed in Kokomo, Indiana. The plant is scheduled to be operational by 2026.

Welcoming Samsung SDI’s investment in the US with GM, the Indiana government pledged to offer performance-based incentives through St. Joseph County, Indiana Michigan Power, the Northern Indiana Public Service Company and the Indiana Economic Development Corporation.

The two companies’ battery plant project is projected to set a record for the largest job commitment in 75 years, aiming to open up some 1,700 manufacturing jobs in St. Joseph County, Indiana, where the plant will be built.

Samsung and Stellantis’ first EV battery plant is also expected to create some 1,400 new jobs in the city of Kokomo, Indiana.

By Byun Hye-jin (hyejin2@heraldcorp.com)