Stellantis and Samsung SDI said on Tuesday they will team up to build a $2.5 billion lithium-ion battery plant in Indiana.
The project, which will create 1,400 new jobs and could surpass the $3 billion mark once it's complete, is Stellantis' first battery plant in the U.S. and its fifth worldwide.
The latest factory is slated to open in 2025 near Stellantis' engine, casting and transmission plants in Kokomo, Indiana, where the company is also investing $229 million to produce electrified, eight-speed transmissions to help reach its goal for EVs to represent more than half of its U.S. sales by 2030.
The news comes one day after Hyundai's blockbuster announcement that it plans to invest $10 billion in mobility innovation in North America through 2025, including $5.5 billion in an EV plant and battery manufacturing facility outside of Savannah, Georgia. That project represents the largest-ever economic development deal recruited by the Peach State.
Stellantis' joint venture with the South Korean battery manufacturer in Indiana will support the global juggernaut's goal to ramp up electric vehicle production. The Chrysler parent company is investing more than $35 billion in electrification, software, and technology through 2025, and expects to launch more than 75 new battery-electric models, including 25 nameplates in the U.S. and Canada, by 2030.
Stellantis announced in March plans to invest $4.1 billion in a separate lithium-ion battery joint venture with LG Energy Solution. That plant is expected to open in Windsor, Ontario, in 2024.
The new battery factory in Kokomo will have an initial annual production capacity of 23 gigawatt-hours, with the ability to increase to up to 33 gigawatt-hours in the future, said Mark Stewart, COO of Stellantis North America.