Stellantis and Samsung SDI Plan to Build Second US EV Battery Plant, Production Targeted for 2027

By: Mike Smith

Stellantis, the French-Italian automaker (Chrysler, Dodge, Jeep, RAM, Fiat, Maserati, Alfa Romeo), and Samsung SDI, a South Korean battery maker, have revealed plans to establish a second joint-venture plant in the United States focused on manufacturing electric vehicle (EV) batteries. The targeted commencement of production is set for 2027. However, the project’s finalization is still pending, and the specific location of the plant is currently under review. Additionally, further details about the investment amount and the number of employees to be hired will be disclosed at a later date. The initial production capacity of the plant is expected to reach 34 gigawatt hours (GWh).

Stellantis CEO, Carlos Tavares, expressed that this new facility would play a crucial role in achieving their ambitious objective of introducing at least 25 new battery electric vehicles into the North American market by the end of the decade. The automaker has set a goal of achieving 100% electric passenger car sales in Europe and a 50% electric car and light truck mix in the U.S. by 2030. To meet this target, Stellantis aims to secure approximately 400 GWh of battery capacity at this new second plant dubbed the StarPlus Energy Gigafactory.

In 2021, Stellantis had already announced a substantial $35 billion investment plan dedicated to EV production and software worldwide, covering the period up to 2025. The upcoming second U.S. battery plant is part of Stellantis’ broader strategy and will be the sixth plant aimed at supporting their ambitious goals.

Samsung SDI’s CEO, Yoon-ho Choi, stated that the establishment of the second joint-venture plant would significantly expedite their market penetration in the United States.

Prior to this, in May 2022, Stellantis and Samsung SDI had unveiled their plans to invest over $2.5 billion in their first joint battery plant, set to open in the first quarter of 2025 in Kokomo, Indiana. That plant will have an initial capacity of 23 GWh, eventually increasing to 33 GWh. It was projected to provide employment to 1,400 people, with the investment potentially reaching $3.1 billion.

Stellantis is simultaneously working on another joint-venture battery plant in Windsor, Ontario, Canada, in collaboration with LG Energy Solution of South Korea. This facility, scheduled to open in 2024, will generate over 2,500 job opportunities and boast an annual production capacity of more than 45 GWh.

Samsung SDI is not exclusively partnering with Stellantis; it is also collaborating with General Motors (GM). In April, the two companies disclosed their joint investment of over $3 billion in constructing a battery plant in the U.S., slated to open in 2026, with an annual capacity of 30 GWh. Similar to the other joint-venture plants, this one will also be located in Indiana and is expected to employ 1,700 individuals.

The United Auto Workers union is actively negotiating with Stellantis for a new labor agreement that covers the automaker’s U.S. hourly workers. The union advocates for representation and higher wages for employees at these joint-venture plants, including those built by GM, Stellantis, and Ford Motor.

The announcement of the second U.S. battery plant resulted in a positive market response for Samsung SDI, with their shares experiencing a notable increase of up to 4.1%, compared to the benchmark KOSPI’s rise of 0.8% on Monday.