skip to Main Content

Stellantis-Samsung Second EV Battery Plant Coming To Indiana

| Date Published:

On Oct. 11, Stellantis and Samsung SDI announced plans to build a second EV battery manufacturing plant in Kokomo, IN, as part of their StarPlus Energy joint venture. But that announcement came during a strike involving the UAW and automakers Chrysler, General Motors, and Ford Motor.

Photo Courtesy StarPlus Energy 

About 50,000 UAW workers went on strike in mid-September over issues such as wages and pension benefits, Reuters reported. The two sides eventually reached a tentative deal about six weeks later.

According to CNBC, as part of that deal, EV battery workers from GM’s Ultium Cells joint venture were added to the union’s master agreement with the company. As Reuters reported, the automakers and some industry analysts said the deals would “make it harder for the Detroit Three to compete” with EV leader Tesla, which is not unionized, and non-union foreign brands like Toyota Motor.

CNN noted that EV battery plants are a “critical part” of traditional automakers’ plans to transition from gasoline-powered cars to EVs in the coming decades.

But those plans “could be a threat” to existing jobs at facilities that manufacture non-EV engines and transmissions. Stellantis has four such plants in Kokomo that together employ more than 5,000 hourly workers.

Photo Courtesy Indiana Economic Development Corporation

The tentative deal between auto workers and carmakers is due to expire on April 30, 2028. UAW President Shawn Fain said the date was chosen with the expectation that another strike could begin on May 1, 2028 — and that the strike might include other unions besides the UAW.

Regardless of how that plays out, Stellantis and Samsung SDI are pressing forward with their plans to become major forces in U.S. EV battery manufacturing.

According to a press release, StarPlus Energy’s second and latest plant in Kokomo is expected to begin production in early 2027.

Once completed, the facility will have an annual capacity of 34 gigawatt hours (GWh). The joint venture will invest more than $3.2 billion and generate 1,400 new jobs in Kokomo and surrounding areas. The total investment for both battery facilities will be more than $6.3 billion, creating a total of 2,800 new jobs.

Photo Courtesy Stellantis North America

Construction is already underway on the first StarPlus Energy gigafactory, which should open by the first quarter of 2025 with a yearly production capacity of 33 GWh.

The new plants are part of Stellantis’ broader strategic plan — Dare Forward 2030 — to speed its evolution into a predominately EV company.

One goal is to reach a 100% passenger car battery EV (BEV) sales mix in Europe by 2030. Another goal is to obtain a 50% passenger car and light-duty truck BEV sales mix in the United States by 2030.

To hit those targets, Stellantis needs about 400 GWh of battery capacity. The company claims to be on track to become a carbon net-zero corporation by 2038.

Mark Stewart, chief operating officer of Stellantis’ North America operation, called batteries “the foundation of our electrification strategy” in a statement following the second Kokomo plant announcement.

“The BEVs coming to our North America brands play an important role in our drive to offer clean, safe, and affordable mobility for all and achieve the bold goal of carbon net zero by 2038,” he said in the press release.

Photo Courtesy Stellantis North America

Meanwhile, constructing the second StarPlus Energy battery plant will help Samsung SDI establish its largest production base for EV batteries in North America.

“We expect Stellantis brand vehicles powered by Samsung SDI batteries featuring supreme technologies to contribute to accelerating the U.S. transition to an era of electric vehicles,” Yoon-ho Choi, Samsung president and CEO, said in a statement.


Back To Top