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May 24, 2022

Joint venture of Stellantis, Samsung SDI powers state’s ambitious sustainable battery tech and EV strategy with $2.5B investment

Indiana notched a huge victory in its quest to build an economy of the future with the announcement in late May that Stellantis, one of the world’s leading automakers, is partnering with Samsung SDI to invest more than $2.5 billion in an electric-vehicle battery manufacturing plant in Kokomo.

The next-generation manufacturing facility will supply battery modules for a range of vehicles produced at Stellantis’ North American assembly plants. The joint venture will result in 1,400 new high-wage jobs in Howard County, in a novel industry to the state of Indiana. The investment also represents Samsung SDI’s first major manufacturing operations in North America. Because of the new facility, Hoosiers can work for the 20th largest company in the world for the first time . 

 



“Our goals for the growth of Indiana’s economy are ambitious,” said Indiana Secretary of Commerce Brad Chambers.



 

This joint venture is in line with the state’s 5-point economic development strategy announced late last year—the 5E roadmap, which focuses on the Economy of the Future and Energy Transition along with Entrepreneurship, External Engagement and Environmental/Quality of Life investments.

“Large-scale investments from companies like Stellantis and Samsung SDI are a testament to Indiana’s business-friendly climate, its strong workforce, a growing population and our continued investment in quality of life,” said Chambers. “The economic growth and momentum in our state this year is unprecedented, but not unexpected due to the focus of our team and the clarity of the goals we set out to accomplish.”

The investment is also in line with Stellantis’ Dare Forward 2030 strategic plan, which calls for the company to reach annual global sales of battery electric vehicles of five million by 2030. Stellantis, whose brands include Maserati, Alfa Romeo, Jeep, Fiat and Chrysler, is aiming for battery electric vehicles to account for 100% of its passenger car sales in Europe and 50% of its passenger car and light-duty truck sales in North America by the end of the decade.

Stellantis already has a significant presence in Indiana. It announced plans in October 2021 to invest $229 million in its Kokomo operations to support the company’s goal of achieving 40% low-emission vehicle sales in the U.S. by 2030. In 2020 it announced a $400 million investment to expand and retool its Indiana Transmission Plant II for production of its new GMET4 engine.

“Today’s announcement further solidifies our global battery production footprint and demonstrates Stellantis’ drive toward a decarbonized future outlined in Dare Forward 2030,” said Stellantis CEO Carlos Tavares.

It’s the first significant investment in Indiana for Samsung SDI, which will apply its cutting-edge technology PRiMX to the plant’s production of Electric Vehicle battery cells and modules for the North American market.

“We express our gratitude toward officials from Indiana and Stellantis for supporting the final selection of the plant site in Indiana. We have secured a solid foothold in a rapidly growing North American EV market through the joint venture with Stellantis,” said Yoonho Choi, President and CEO of Samsung SDI.

This article was featured in the July 2022 edition of the IEDC’s newsletter. Subscribe today.

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