Takeaways
- Stellantis and Samsung SDI will spend $3.2 billion on a second battery gigafactory in Kokomo, Indiana, as part of their joint venture.
- Stellantis and Samsung SDI have agreed to build the first factory in May. It is currently under construction and is expected to enter service in two years.
- Stellantis sees the production of batteries for electric vehicles (EV) as key to its plan to become a carbon-neutral company. ;by 2038.
Automaker Stellantis (STLA) and battery maker Samsung SDI announced they will build a second U.S. battery manufacturing plant in Kokomo, Indiana, as part of their StarPlus Energy joint venture.
The companies said that They would invest more than $3.2 billion in the new gigafactory, which they expect production to begin in 2027. The factory is expected to have an annual capacity of 34 gigawatt hours and create 1,400 jobs.
In May, Stellantis and Samsung SDI agreed to create Kokomo's first gigafactory, which is under construction and expected to begin operations in 2025. It would employ 1,400 workers, and the companies noted that the total investment for the two sites would amount to more than 6 .3 billion dollars. .
Mark Stewart, CEO of Stellantis, said that “the battery ecosystem is the foundation of our electrification strategy.” The maker of Jeep and other vehicle brands has set a goal of 100% car battery electric vehicle (BEV) sales in Europe and 50% passenger car and light truck sales in the United States. United States by 2030. Stellantis has also said it wants to become a carbon neutral company by 2038.
The question of union representation in their battery factories is one of the central issues of the United Workers' strike. #39;automotive against the big three automakers which has lasted for more than three weeks.
Stellantis shares rose by more than 3% on Wednesday after the news about the second battery factory was revealed, and is trading near its 18-month high reached in July.
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Source: investopedia.com