Stellantis, the parent company of Dodge, Jeep, and Chrysler, has selected Kokomo, Indiana, as the site for its next electric vehicle battery factory. The plant will be built in partnership with South Korea’s Samsung SDI, which is a leading EV battery maker. The companies made the announcement Tuesday alongside Indiana Governor Eric Holcomb and several other local officials in Kokomo.
The new facility will create 1,400 new jobs and cost $2.5 billion to construct, though Stellantis and Samsung are willing to spend up to $3 billion on the project, Mark Stewart, chief operating officer of Stellantis, said at the press conference. The cost will be split between the two companies.
Stellantis already operates a number of facilities in Kokomo, including plants for casting, transmissions, and engines. The addition of an EV battery factory will help accelerate the automaker’s push to electrify vast swaths of its lineup, the company said. Stellantis had previously announced that it will build a $4.1 billion EV battery plant, along with LG Energy Solution, in Windsor, Ontario.
Stellantis, which has been slower to embrace EVs than Ford and General Motors, has said it is targeting the sale of 5 million EVs by 2030. The company, which is the fourth-largest automaker in the world, announced a comprehensive plan last year to electrify the lineups at most of its brands, including EV versions of the Ram 1500 pickup truck and a Dodge electric muscle car as well as multiple Jeep models. Earlier this year, the company announced that Chrysler will only sell electric vehicles by 2028.
As the auto industry slowly shifts to electrification, the need to expand battery manufacturing capacity is growing. Globally, battery production is expected to grow from 95.3GWh in 2020 to 410.5GWh in 2024, according to GlobalData, a data and analytics company.