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Stellantis, Samsung to build second EV battery plant in Kokomo

Stellantis-EV Plan
Posted at 7:27 AM, Oct 11, 2023

KOKOMO — Stellantis and Samsung EDI have announced a plan to invest $3.2 billion in building a second EV battery plant in Kokomo.

Governor Eric Holcomb shared the news Wednesday morning.

“Indiana’s economy is on a roll,” said Gov. Holcomb. “Today’s commitment from Stellantis and Samsung SDI will double the capital investment, the new jobs created, and the impact this joint venture will have on Kokomo and the state of Indiana for decades to come. This decision puts Hoosiers squarely at the center of innovating and developing the future of mobility, catalyzing Indiana’s leadership position in tomorrow’s global economy.”

The facility will be the joint venture’s second StarPlus Energy gigafactory in Kokomo. To support this growth, the companies plan to create 1,400 new, high-wage jobs in north central Indiana, growing its total planned workforce to 2,800 jobs.

The second plant will be built adjacent to the first one, which is scheduled to open in 2025. The second plant is slated to open in 2027.

“Our battery ecosystem is the foundation of our electrification strategy and our great partners Samsung SDI, the state of Indiana, and the city of Kokomo have created a compelling case for locating our sixth gigafactory in Kokomo,” said Mark Stewart, Stellantis COO North America. “The BEVs coming to our North America brands play an important role in our drive to offer clean, safe and affordable mobility for all and achieve the bold goal of carbon net zero by 2038.”

“Through construction of the second battery plant of StarPlus Energy, Samsung SDI will be establishing its largest production base for electric vehicle batteries in North America,” said Yoon-ho Choi, president and CEO of Samsung SDI. “We expect Stellantis brand vehicles powered by Samsung SDI batteries featuring unrivalled technologies to contribute to fastening the U.S. transition to an era of electric vehicles.”

The Indiana Economic Development Corporation (IEDC) committed an investment of $37.5 million in conditional tax credits and up to $2 million in conditional training grants based on the joint venture’s investment.

According to a release from the Governor's office, the IEDC will also invest up to $22 million in conditional redevelopment tax credits based on the investment plans and up to $115 million in conditional structured performance payments. The incentives are performance-based.