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 advised Reuters.
The businesses in October introduced they have been signing a memorandum of understanding to type a three way partnership for lithium ion battery manufacturing in North America and mentioned the plant was focused to start out in 2025 and aimed to have an preliminary annual manufacturing capability of 23 gigawatt hours, with the flexibility 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 studies, 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 Governor Eric Holcomb.
The announcement might show a disappointment to Michigan financial growth officers. Earlier this month, Stewart mentioned Michigan “completely” might be residence to a brand new plant and that the corporate was making its choice on a quick monitor.
The JV battery plant is anticipated to be constructed close to Stellantis engine, casting and transmission crops in Kokomo, Indiana, the sources mentioned, declining to be named as a result of the announcement isn’t but public.
In October, Stellantis mentioned it might make investments $229 million in its three Kokomo crops to provide electrified, eight-speed transmissions.
In March, Stellantis and LG Power Resolution mentioned they’d make investments $4.1 billion for a three way partnership lithium-ion battery manufacturing plant in Canada that can 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 can even be working with Stellantis on a three way partnership to construct a brand new facility in the USA that can manufacture batteries for electrical automobiles.”
He urged the businesses to “enter into partnerships” with “American union members” and mentioned JVs “that manufacture electrical automobile batteries could 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 automobiles a further $4,500 tax credit score however that stalled in Congress.
Crain’s Detroit Enterprise contributed to this report