EV battery plants adding to Kokomo’s automotive heritage
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowThe city of Kokomo for decades has been known for its history in the automotive industry, dating back to the 1890s, when Elwood Haynes invented the first commercially successful gas powered automobile in the United States.
Chrysler and General Motors would establish major manufacturing operations in the Howard County city that would employ thousands and fuel the city’s economy and way of life. But Kokomo, like so many other so-called Rust Belt cities, would eventually see investment and jobs dry up – until now.
StarPlus Energy, a joint venture between global automaker Stellantis and South Korea-based Samsung SDI recently committed to building a second electric vehicle battery plant in Kokomo, bringing its total investment to over $6 billion and 2,800 anticipated jobs.
In an interview on Inside INdiana Business with Gerry Dick, Kokomo Mayor Tyler Moore said the investment presents challenges dealing with grow, particularly when it comes to housing.
He said the city was short on supply before the announcement of the first, $2.5 billion battery plant, and the city shifted gears to make housing a priority.
“We commissioned a study to be done, and that showed that with the projected employment coming, that we could easily stand to have 400 to 600 multifamily units and 300 to 500 single family units,” Moore said. “And so, with economic climates and still the cost of resources and available workers, I know that we’re struggling to try to get the necessary housing we would need.”
The Indiana Association of Realtors estimates there is demand for more than 30,000 housing units that currently don’t exist in Kokomo. A recent study found average apartment occupancy rates are at 97%.
With the likelihood of hundreds of workers moving to Kokomo from outside the area for jobs at the new EV battery plants, local officials are searching for solutions.
Kokomo City Controller Weston Reed said collaboration will be key to solving the housing issue.
“If you tried to take on these projects on your own, you’re never gonna get them done,” Reed said. “So internally, we have a great group, but we also have a great partnership with the IEDC, with our northern Indiana regional partnership kind of all coming together understanding that this isn’t just a Kokomo problem, but it’s a statewide and regional problem as well.”
Despite the housing situation, Moore said the influx of EV battery production will be transformational for the city.
“Both battery plants will provide right around 2,800 jobs but the, at least, three suppliers that are committed now and potential others will take the job growth over 3,000,” he said. “That impact alone we know may not all come from the Kokomo and Howard County area, and so it’s going to be impactful for the entire region here in north central Indiana.”
Despite the new facilities, Stellantis continues to deal with the impact of the United Auto Workers strike. While there currently are no picket lines at Indiana facilities, the city has felt the impact as Stellantis recently laid off 700 workers at two of its Kokomo plants.
Moore said the strike remains a concern.
“We’re not unfamiliar with with layoffs, however long they may be,” he said. “We’re encouraged by the term temporary being used and know that they’re getting close to hopefully reaching a bargain. So we’re concerned but the community’s resilient. We stand behind and support those that are affected.”