Consultants Forum Advertise
Subscribe
Close

  • Free for qualified executives and consultants to industry

  • Receive quarterly issues of Area Development Magazine and special market report and directory issues

Subscribe Now
Renew

Area Development - Site Selection, Facility Planning and Workforce Development

Stellantis-Samsung SDI Joint Venture Plans Kokomo, Indiana, EV Battery Plant

05/26/2022
Stellantis and Samsung SDI will undertake a joint venture to build a new electric vehicle battery manufacturing facility in Kokomo, Indiana. The $2.5 billion project is expected to create 1,400 jobs in Howard County.

The site, which will be in close proximity to an existing Stellantis facility in Kokomo, will establish Samsung SDI’s first manufacturing operations in the U.S. The location will supply battery modules for a range of electric vehicles produced at Stellantis’ North American assembly plants. Construction is scheduled to begin later this year with production planned to launch in the first quarter of 2025.

“Just under one year ago, we committed to an aggressive electrification strategy anchored by five gigafactories between Europe and North America,” said Carlos Tavares, Stellantis CEO. “Today’s announcement further solidifies our global battery production footprint and demonstrates Stellantis’ drive toward a decarbonized future outlined in Dare Forward 2030. I am grateful to Governor Holcomb and Secretary Chambers along with Mayor Moore, and their teams as well as all my colleagues for their support and dedication to bring this operation to Kokomo, a city that holds a rich and long history for our company.”

Stellantis employs over 85,000 people across North America, including over 7,000 throughout its Indiana operations.

"We express our gratitude towards officials from the state of Indiana and Stellantis for supporting the final selection of the plant site in Indiana," added YOONHO CHOI, CEO of Samsung SDI. "We have secured a solid foothold in a rapidly growing North American EV market through the joint venture with Stellantis. We will make sincere efforts to bring satisfaction to the market with top-class quality products in the future, and we will contribute towards meeting the climate change target."

Based on the company’s plans to locate its operations in Indiana, the Indiana Economic Development Corporation (IEDC) committed an investment in the Project of up to $37.5 million in the form of conditional tax credits; up to $2 million in conditional training grants; up to $20 million in conditional redevelopment tax credits based on the company’s investment plans; up to $2 million to the local community from the Industrial Development Grant Fund to support infrastructure improvements; and up to $100 million in conditional structured performance payments and $25 million for site readiness to offset capital and infrastructure costs.

“Our goals for the growth of Indiana’s economy are ambitious,” said Brad Chambers, secretary of commerce for Indiana Economic Development Corporation. “This significant venture with Stellantis and Samsung SDI is squarely in line with our 5E focus on the energy transition and building an economy of the future. Large-scale investments like this are a testament to Indiana’s business-friendly climate, its strong workforce, a growing population and our continued investment in quality of life. The economic growth and momentum in our state this year is unprecedented.”

The IEDC and other state financing authorities will also offer repayable financing support to the Project to aid construction and infrastructure. These incentives are performance-based, meaning the company is eligible to claim state benefits once investments are made and employees are hired and trained. The city of Kokomo, Greater Kokomo Economic Development Alliance Inc., Howard County, Duke Energy Indiana and Northern Indiana Public Service Company offered additional incentives.

Exclusive Research