Stellantis to invest $3.2B in second EV battery plant in Kokomo
Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe Now
Before construction on the first one is completed, global automaker Stellantis is planning to build a second electric vehicle battery manufacturing plant in Kokomo. The company, through its StarPlus Energy joint venture with Samsung SDI, plans to invest $3.2 billion to build the facility and create 1,400 additional jobs.
The joint venture is in the midst of building its first, $2.5 billion facility in the Howard County city, which is also expected to create 1,400 jobs. That plant is expected to open in the first quarter of 2025.
In July, Stellantis announced it was building a second U.S. EV battery factory, and sixth overall, but a location was not provided at the time.
“Our battery ecosystem is the foundation of our electrification strategy, and our great partners Samsung SDI, the state of Indiana, and the city of Kokomo have created a compelling case for locating our sixth gigafactory in Kokomo,” Mark Stewart, Stellantis Chief Operating Officer for North America, said in a news release. “The BEVs coming to our North America brands play an important role in our drive to offer clean, safe and affordable mobility for all and achieve the bold goal of carbon net zero by 2038.”
A start date for construction was not provided, but the new plant is expected to begin production in early 2027. The facility will initially be able to produce 34 gigawatt-hours of EV batteries annually.
“Through construction of the second battery plant of StarPlus Energy, Samsung SDI will be establishing its largest production base for electric vehicle batteries in North America,” said Yoon-ho Choi, CEO of Samsung SDI. “We expect Stellantis brand vehicles powered by Samsung SDI batteries featuring supreme technologies to contribute to accelerating the U.S. transition to an era of electric vehicles.”
The Indiana Economic Development Corp. is committing a state-record incentive package to the joint venture for the second plant, topping the previous record-setting package pledged for the first plant last year.
The IIEDC is committing up to $39.5 million in conditional tax credits and training grants, up to $22 million in redevelopment tax credits, and up to $115 million in structured performance payments.
The incentive package must still be approved by the IEDC Board of Directors. The company will not be eligible to claim the incentives until Hoosier workers are hired and trained for the new jobs.
Additionally, the city of Kokomo, Greater Kokomo Economic Development Alliance Inc., Howard County, Duke Energy Indiana, and Northern Indiana Public Service Co. have offered additional incentives.
Stellantis employs more than 7,000 people across four facilities in Kokomo and one in Tipton. In February, the automaker said it would invest $155 million at three of its Kokomo plants to boost production of a new electric drive module.
“Today’s commitment from Stellantis and Samsung SDI will double the capital investment, the new jobs created, and the impact this joint venture will have on Kokomo and the state of Indiana for decades to come,” said Gov. Eric Holcomb. “This decision puts Hoosiers squarely at the center of innovating and developing the future of mobility, catalyzing Indiana’s leadership position in tomorrow’s global economy.”
The new Stellantis facility adds to a growing EV battery ecosystem in Indiana. Outside of the two Kokomo plants, General Motors and Samsung SDI are planning to build a $3 billion EV battery plant in the northern Indiana town of New Carlisle and add 1,700 jobs.
In Terre Haute, construction has begun on a $1.5 billion battery separator manufacturing campus in the Vigo County Industrial Park II that will add 650 jobs. Oregon-based Entek will produce separators used in lithium-ion batteries, including EV batteries.