Stellantis, a French-Italian automaker, and Samsung SDI, a South Korean battery manufacturer, announced on Monday that they want to launch a second joint venture factory in the United States to produce batteries for electric vehicles. The plant is expected to begin operations in 2027.
The companies stated that the purchase was still being finalised and that the location of the plant was being looked into. Additionally, the site’s investment amount and the number of employees it will hire will be disclosed later. 34 gigawatt hours (GWh) of initial output capacity will be available from the plant.
By the end of the decade, Stellantis CEO Carlos Tavares said in a statement, “This new facility will help us achieve our ambitious target to offer at least 25 new battery electric vehicles for the North American market.”
By 2030, 100% of passenger cars sold in Europe and 50% of cars and light trucks sold in the United States will be electric, according to Stellantis, a company whose brands include Peugeot, Jeep, Ram, Alfa Romeo, Citroen, and Opel. It has stated that it needs to obtain around 400 GWh of battery capacity to reach that goal.
Stellantis announced in 2021 that it will invest $35 billion in EV software and production worldwide through 2025. The sixth U.S. battery factory, according to Stellantis, will assist the company’s objectives.
Yoon-ho Choi, CEO of Samsung SDI, stated in the release, “The second factory will speed our market expansion into the U.S.
The first joint battery facility between Stellantis and Samsung SDI is scheduled to open in Kokomo, Indiana, in the first quarter of 2025, and it will cost more than $2.5 billion to construct, the companies said in May 2022. Initially capable of producing 23 GWh, that facility will eventually be able to produce 33 GWh.
The firms predicted 1,400 jobs and a potential investment of $3.1 billion for the Indiana project at the time.
Along with LG Energy Solution of South Korea, Stellantis is constructing a battery facility in Windsor, Ontario, Canada. With 2,500 new employment and a yearly production capacity of more than 45 GWh, that plant is scheduled to operate in 2024.
A joint venture battery factory in the United States with a 2026 opening date and a 30 GWh annual capacity was announced by Samsung SDI and General Motors in April as a $3 billion investment. 1,700 people will be employed by the plant, which will also be built in Indiana.
The United Auto Workers union wants employees at these joint-venture facilities being built by GM, Stellantis, and Ford Motor to be union-represented and paid higher salaries. The union has initiated discussions with Stellantis for a new labour agreement covering the automaker’s U.S. hourly workers.
Following Monday’s announcement, Samsung SDI shares increased by as high as 4.1%, outpacing the benchmark KOSPI’s 0.8% gain.
