Stellantis to construct 34 GWh battery plant in North America

On Monday, Stellantis announced the construction of a 34 gigawatt-hour (GWh) battery plant in the United States. It will be Stellantis’ second battery plant in North America. 

Stellantis N.V. and Samsung SDI signed a memorandum of understanding to build and develop a second battery manufacturing plant in the United States. The memorandum of understanding was included in the two companies existing StarPlus Energy joint venture. 

The legacy automaker and Samsung SDI initiated a joint venture in May 2022, rolling out plans to invest more than $2.5 billion in a lithium-ion battery production plant in the United States. The 2022 joint venture initiated plans to build an electric vehicle battery plant in Kokomo, Indiana. 

“By establishing the joint venture with Stellantis last year, we laid a solid groundwork for marking our presence in North America,” remarked Samsung SDI President and CEO Yoon-ho Choi. “The second plant will accelerate our market penetration into the U.S. and help Stellantis push forward the U.S. transition to an era of electric vehicles by supplying the products featuring the highest levels of safety and quality.”

The two companies aim to start production at the second battery plant by 2027, targeting an initial annual production capacity of 34 GWh. The first battery plant in Indiana is targeted to launch by 2025 and aims for an annual production capacity of 33 GWh. Stellantis hope that the two battery plants with Samsung will help it offer up to 25 new battery electric vehicles in North America. 

“This new facility will contribute to reaching our aggressive target to offer at least 25 new battery electric vehicles for the North American market by the end of the decade,” said Stellantis CEO Carlos Tavares. “We are continuing to add more capacity in the United States together with our great partner Samsung SDI and laying the next steps to reaching our carbon neutrality commitment by 2038.”

The two battery plants in the United States will help Stellantis take advantage of the EV tax incentives from the Inflation Reduction Act (IRA). Tax incentives from the IRA have significantly helped increase battery electric vehicles sale in the United States. For example, Ford reported that F-150 Lightning sales were up 100% in the second quarter. 

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Stellantis to construct 34 GWh battery plant in North America
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