|Kokomo Mayor Tyler Moore talks at Ivy Tech Community College in Kokomo, Ind., May 24, about Stellantis and Samsung SDI planning to invest over $2.5 billion in a joint venture to produce Lithium-Ion batteries for electric vehicles, and what it means to the local community. The plant will be built on a 142 acre lot southeast of the Stellantis Kokomo Engine Plant. AP-Yonhap|
Samsung SDI said Wednesday it was investing $1.29 billion in an electric vehicle battery plant to be built in the U.S. state of Indiana in a joint venture with Stellantis N.V.
Samsung SDI will own a 51 percent stake in the $2.5 billion joint venture company set up with the Chrysler parent, and its investment could increase to as much as $1.57 billion over the long term, it said in a regulatory filing.
The two companies may boost their investment in the project to as much as $3.1 billion, the South Korean company said.
The two companies signed a binding agreement in Kokomo, Indiana, Tuesday (local time), to establish the manufacturing facility in the Midwestern state by 2025, Samsung SDI said in a press release.
The construction will start later this year, with the production expected to begin in the first quarter of 2025.
The plant will supply lithium ion battery cells and modules for electric vehicles produced at Stellantis' assembly lines in North America. It initially aims to have an annual production capacity of 23 gigawatt hours (GWh) and plans to increase this to 33 GWh in the coming years.
Samsung SDI will apply its latest premium technology, launched under the brand name of PRiMX, to produce EV battery cells and modules, it said.
The two companies agreed in October to form a joint venture to build what would be the first U.S. battery cell plant for the South Korean battery maker.
Samsung SDI has foreign operations in China, Hungary, Malaysia and Vietnam, and runs a battery pack assembly line in the U.S. state of Michigan. (Yonhap)