Electric vehicles have taken off, and businesses are not hesitant to spend heavily on them. Stellantis and Samsung have agreed to build a $2.5 billion facility in Indiana to produce EV batteries.
While many people are familiar with the Galaxy line of Android phones, Samsung has a division called Samsung SDI that manufactures batteries for electric cars. The subsidiary has partnered with Stellantis to establish an EV battery manufacturing factory in Kokomo, Indiana. The facility will directly employ 1,400 people.
Stellantis is the parent corporation of automakers such as Dodge, Jeep, and Chrysler.
The two corporations will divide development costs and are prepared to invest up to $3 billion in the manufacturing.
Stellantis already has a plant in Kokomo, Indiana, where it manufactures castings, gearboxes, and engines.
Stellantis previously announced plans to develop another EV battery manufacturing factory in Windsor, Ontario, with LG Energy Solution for $4.1 billion. Both initiatives are part of Stellantis' expansion into the rapidly expanding EV sector.
Stellantis aims to sell 5 million electrified vehicles across its brands by 2030. Last year, it unveiled a precise plan for electrifying its lineup. By 2028, the Chrysler brand will solely offer electric automobiles.
The Kokoma project is scheduled to open in 2025, with an initial annual capacity of 23 GWh and an expansion capacity of 33 GWh. The Windsor plant will begin operations with a 45 GWh capacity.
General Motors, which plans a 140 GWh yearly capacity, and Ford, which will develop three factories with a total capacity of 129 GWh, are two other automakers investing in EV battery manufacture. Volkswagen is considerably more ambitious, aiming for 240 GWh per year capacity from six European factories by 2020.