Joint venture StarPlus Energy doubles investment and job creation plans for Kokomo, solidifying Indiana’s global leadership in shaping the future of mobility.
KOKOMO, ID (STL.News) Indiana Governor Eric J. Holcomb announced that Stellantis (NYSE: STLA) and Samsung SDI will significantly expand electric vehicle battery manufacturing operations in Indiana, investing more than $3.2 billion. The facility will be the joint venture’s second StarPlus Energy gigafactory in Kokomo. To support this growth, the companies plan to create 1,400 new, high-wage jobs in north central Indiana, growing its total planned workforce to 2,800 jobs.
“Indiana’s economy is on a roll,” said Gov. Holcomb. “Today’s commitment from Stellantis and Samsung SDI will double the capital investment, the new jobs created, and the impact this joint venture will have on Kokomo and the state of Indiana for decades to come. This decision puts Hoosiers squarely at the center of innovating and developing the future of mobility, catalyzing Indiana’s leadership position in tomorrow’s global economy.”
This will be the second StarPlus Energy gigafactory in Kokomo, growing the joint venture company’s total investment to more than $6.3 billion. The second next-generation electric vehicle manufacturing facility will be built adjacent to the first gigafactory in Kokomo, first announced in May 2022, which is currently under construction and targeted to launch in the first quarter of 2025 with an annual production of 33 gigawatt hours (GWh). This second battery manufacturing facility is expected to start production in early 2027 and aims to have an initial annual production of 34 GWh, significantly increasing the joint venture’s U.S. capacity and accelerating Stellantis’ transition to electric vehicles.
“Our battery ecosystem is the foundation of our electrification strategy, and our great partners Samsung SDI, the state of Indiana, and the city of Kokomo have created a compelling case for locating our sixth gigafactory in Kokomo,” said Mark Stewart, Stellantis COO North America. “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.”
This investment is intended to be the sixth battery facility to support Stellantis’ bold electrification plan outlined in Dare Forward 2030 and is part of the company’s long-term electrification strategy to invest $35 billion USD through 2025 in electrification and software globally. Stellantis plans to reach a 100% passenger car battery electric vehicle (BEV) sales mix in Europe and 50% passenger car and light-duty truck BEV sales mix in the U.S. by 2030. To achieve these sales targets, the company is securing approximately 400 GWh of battery capacity. This investment marks that Stellantis is on track to become a carbon net zero corporation by 2038, all scopes included, with single-digit percentage compensation of remaining emissions.
“Through construction of the second battery plant of StarPlus Energy, Samsung SDI will be establishing its largest production base for electric vehicle batteries in North America,” said Yoon-ho Choi, president and CEO of Samsung SDI. “We expect Stellantis brand vehicles powered by Samsung SDI batteries featuring supreme technologies to contribute to fastening the U.S. transition to an era of electric vehicles.”
Stellantis employs more than 85,000 people across North America, including more than 7,000 throughout its Indiana operations. Since 2020, the company and its JV partners have committed to investing nearly $6.5 billion in Indiana to support its transition to electrification. In February, the company announced plans to invest $155 million in three Indiana facilities to add and localize production of its new electric drive module (EDM) to provide an all-in-one solution for electric vehicle powertrains.
“We would like to extend our sincere gratitude to Stellantis, Samsung SDI, and their joint venture StarPlus Energy for their continued commitment and investment in our community. The addition of this second battery plant will solidify Kokomo as one of the largest electric vehicle battery producers in North America and shows that Kokomo continues to remain on the cutting edge of advanced automotive manufacturing.”
Pending approval from the Indiana Economic Development Corporation (IEDC) Board of Directors, the IEDC committed an investment in StarPlus Energy of up to $37.5 million in the form of conditional tax credits and up to $2 million in conditional training grants based on the joint venture’s investment and job creation plans. The IEDC also committed an investment of up to $22 million in conditional redevelopment tax credits based on the company’s investment plans and up to $115 million in conditional structured performance payments. These incentives are performance-based, meaning the company is eligible to claim state benefits once investments are made, and employees are hired and trained. The city of Kokomo, Greater Kokomo Economic Development Alliance Inc., Howard County, Duke Energy Indiana, and Northern Indiana Public Service Company offered additional incentives.
Today’s news comes on the heels of Gov. Holcomb’s economic development trip to South Korea in August 2022, focused on advancing the state’s electric vehicle ecosystem. There, the governor and the delegation visited Samsung SDI to tour its main electric vehicle battery production line and meet with top executives of the company and with Stellantis to celebrate their growth plans in Indiana.
About Stellantis Stellantis N.V. (NYSE: STLA / Euronext Milan: STLAM / Euronext Paris: STLAP) is one of the world’s leading automakers and mobility providers. Its storied and iconic brands embody the passion of their visionary founders and today’s customers in their innovative products and services, including Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep®, Lancia, Maserati, Opel, Peugeot, Ram, Vauxhall, Free2move and Leasys. Powered by our diversity, we lead the way the world moves – aspiring to become the greatest sustainable mobility tech company, not the biggest, while creating added value for all stakeholders as well as the communities in which it operates. For more information, visit www.stellantis.com.
About Samsung SDI Samsung SDI, headquartered in the Republic of Korea, is a world-leading battery and electronic material manufacturer redefining the worlds of electric vehicles, energy storage systems, and IT devices. The company drives transformation and innovation to emerge as a ‘Creative Energy and Materials Solution Leader’ across the fields of e-mobility, energy solutions, as well as semiconductors and displays. The company commits to sourcing 100% renewable electricity across its entire global operations by 2050. For the latest news, please visit the Samsung SDI News at https://www.samsungsdi.com/sdi-news/list.html.
SOURCE: Indiana Governor
