Samsung SDI, Stellantis to build $4 billion battery plant in Indiana

Samsung SDI’s $4 billion second battery plant with Stellantis will be located in Indiana, the Korean battery maker said Thursday.

Samsung SDI’s $4 billion second battery plant with Stellantis will be located in Indiana, the Korean battery maker said Wednesday.

The EV battery plant will be located in Kokomo, Indiana, where the two companies' first joint factory is situated.

The two parties announced the investment plan in July but did not name the location at the time.

The plant will have 34 gigawatt-hours of production capacity, which is enough to make around 450,000 EVs per year. The two companies will spend a total of $3.9 billion in the plant, with SDI owning 51 percent.

Production will begin in early 2027.

The city of Kokomo is where Samsung SDI has its first battery plant with Stellantis.

Samsung SDI and Stellantis set up a joint U.S. venture, StarPlus Energy, last year and are building a $2.5 billion battery plant in Indiana. The plant is scheduled to start operations in 2025 with 33 gigawatt-hours of capacity.

Choi Yoon-ho, left, CEO of Samsung SDI, and Mark Stewart, Stellantis chief operating officer for the North American region, shake hands after signing an agreement to invest $2.5 billion to build an EV battery factory in Kokomo, Indiana, in May last year. [SAMSUNG SDI]

With the latest announcement, the two companies' total capacity will boost to 67 gigawatt-hours of capacity, around 900,000 EVs.

"With the second factory, Samsung SDI will be able to secure our biggest battery manufacturing site in the North America," said Samsung SDI CEO Choi Yoon-ho. "We anticipate Stellantis EVs installed with SDI's super-gap batteries will advance U.S.'s shift to the EV era."

Samsung SDI in June also said it will jointly invest at least $3 billion with General Motors (GM) to build a battery plant in Indiana. The plant in New Carlisle, Indiana, aims to have an annual production capacity of 30 gigawatt-hours that could be used to manufacture 300,000 EVs.

Samsung SDI's production capacity is expected to grow at an annual rate of 30 percent to reach 230 gigawatt-hours by 2026.

Of the 230 gigawatt-hours of capacity, 97 will be coming from the North American region.

BY SARAH CHEA [chea.sarah@joongang.co.kr]