Stellantis, Samsung SDI to build $2.5 billion EV battery plant in Indiana

Stellantis and Samsung SDI said Tuesday they will build a new battery plant in Indiana as the Chrysler-parent ramps up EV production plans.

Targeted to start operations in 2025, the plant aims to have an initial annual production capacity of 23 gigawatt hours, with an aim to increase to 33 GWh in the next few years.

The joint venture will create 1,400 new jobs and could gradually increase to up to $3.1 billion.

The companies in October announced they were signing a memorandum of understanding to form a joint venture for lithium ion battery production in North America and said the plant was targeted to start in 2025 and aimed to have an initial annual production capacity of 23 gigawatt hours, with the ability to increase to up to 40 gigawatt hours in the future.

The announcement could prove a disappointment to Michigan economic development officials. Earlier this month, Stewart said Michigan "absolutely" could be home to a new plant and that the company was making its decision on a fast track.

The JV battery plant will be built near Stellantis engine, casting and transmission plants in Kokomo, Indiana.

In October, Stellantis said it would invest $229 million in its three Kokomo plants to produce electrified, eight-speed transmissions.

In March, Stellantis and LG Energy Solution said they would invest $4.1 billion for a joint venture lithium-ion battery production plant in Canada that will have an annual production capacity in excess of 45 gigawatt hours. The companies plan to begin operations in 2024.

President Joe Biden at a visit to Samsung Electronics Pyeongtaek campus in South Korea on Friday highlighted the planned investment, saying "Samsung will also be working with Stellantis on a joint venture to build a new facility in the United States that will manufacture batteries for electric vehicles."

He urged the companies to "enter into partnerships" with "American union members" and said JVs "that manufacture electric vehicle batteries would be made stronger by collective bargaining relationships with America unions."

Biden backed legislation last year that would give union-assembled U.S.-built electric vehicles an additional $4,500 tax credit but that stalled in Congress.

Crain's Detroit Business contributed to this report.