Stellantis and Samsung SDI plan to announce on Tuesday they are going to construct a brand new battery plant in Indiana because the Chrysler-parent ramps up EV manufacturing plans, sources briefed on the matter informed Reuters.
The businesses in October introduced they have been signing a memorandum of understanding to kind a three way partnership for lithium ion battery manufacturing in North America and mentioned the plant was focused to begin in 2025 and aimed to have an preliminary annual manufacturing capability of 23 gigawatt hours, with the power to extend to as much as 40 gigawatt hours sooner or later.
The Related Press and The Detroit Information additionally reported the plans.
The businesses didn’t instantly touch upon the stories, however Stellantis mentioned it might present an replace on the way forward for its Kokomo operations on Tuesday that would come with its North American COO Mark Stewart and Indiana Gov. Eric Holcomb.
The announcement may show a disappointment to Michigan financial improvement officers. Earlier this month, Stewart mentioned Michigan “completely” could possibly be dwelling to a brand new plant and that the corporate was making its choice on a quick observe.
The JV battery plant is anticipated to be constructed close to Stellantis engine, casting and transmission vegetation in Kokomo, Indiana, the sources mentioned, declining to be named as a result of the announcement is just not but public.
In October, Stellantis mentioned it might make investments US$229 million in its three Kokomo vegetation to provide electrified, eight-speed transmissions.
In March, Stellantis and LG Vitality Resolution mentioned they’d make investments C$5.2 billion for a three way partnership lithium-ion battery manufacturing plant in Canada that may have an annual manufacturing capability in extra of 45 gigawatt hours. The businesses plan to start operations in 2024.
President Joe Biden at a go to to Samsung Electronics Pyeongtaek campus in South Korea on Friday highlighted the deliberate funding, saying “Samsung may even be working with Stellantis on a three way partnership to construct a brand new facility in the USA that may manufacture batteries for electrical autos.”
He urged the businesses to “enter into partnerships” with “American union members” and mentioned JVs “that manufacture electrical automobile batteries can be made stronger by collective bargaining relationships with America unions.”
Biden backed laws final 12 months that may give union-assembled U.S.-built electrical autos an extra US$4,500 tax credit score however that stalled in Congress.
Crain’s Detroit Enterprise contributed to this report.