Dodge, Jeep and Chrysler automaker Stellantis announces joint venture with Samsung SDI to build $2.5 billion EV battery manufacturing facility in Kokomo, Ind. File Photo by/Roger L. Wollenberg/UPI | License Photo
May 24 (UPI) -- Automaker Stellantis is joining forces with Samsung SDI to build its first electric vehicle battery plant in the United States.
The $2.5 billion joint investment, announced Tuesday, will create 1,400 new jobs in Kokomo, Ind., where the EV battery facility is expected to open in 2025.
The new plant will supply battery modules for a range of Stellantis vehicles built in North America, including Jeep, Chrysler and Dodge, and is centrally located to a number of Stellantis assembly plants in the Midwest.
Stellantis is the fourth-largest automaker in the world, following the 2021 multinational merger of Fiat Chrysler Automobiles and French PSA Group. Stellantis also builds Alfa Romeo, Citroen, Fiat, Peugeot and Maserati.
"Just under one year ago, we committed to an aggressive electrification strategy anchored by five gigafactories between Europe and North America," said Carlos Tavares, CEO of Stellantis.
"Today's announcement further solidifies our global battery production footprint and demonstrates Stellantis' drive toward a decarbonized future outlined in 'Dare Forward 2030.'"
Stellantis is targeting battery-electric vehicle sales of 5 million a year worldwide by 2030, and has announced plans for five battery plants in Europe and North America, including a $4.1 billion joint venture with LG Energy Solutions for a plant in Canada.
Samsung SDI, which stands for Samsung Digital Interface, manufactures lithium-ion battery modules for a number of automakers, including Fiat and BMW.
"We have secured a solid foothold in a rapidly growing North American EV market through the joint venture with Stellantis," said Yoonho Choi, CEO of Samsung SDI.
"We will make sincere efforts to bring satisfaction to the market with top-class quality products in the future, and will contribute toward meeting the climate change target."