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KOKOMO, Ind. — Stellantis, the parent company of Jeep, Chrysler and more than a dozen other brands, and Samsung SDI announced a joint venture to build a $2.5 billion electric vehicle battery plant on 142 acres north of Kokomo just east of State Road 931.

“This multi-billion dollar investment will help solidify the Kokomo region as a global leader in automotive manufacturing while creating 1400 quality jobs,” said Kokomo Mayor Tyler Moore.

The state of Indiana and its partners committed to a potential $187 million in incentives and assistance to land the plant, a bid package that beat out several other states including Michigan.

“To think about them not just 1,400 jobs but careers that people are loyal and proud of to create opportunities for their families like never before this truly is a dream come true,” said Governor Eric Holcomb.

The announcement was made at Kokomo’s Ivy Tech campus and underscored the need for high technology higher education in Indiana.

“I hope that Ivy Tech’s brightest students will join our JV in producing the most competitive batteries in the world together,” said Yoonhoo Choi, CEO of Samsung SDI.

Stellantis has already invested $400 million in the last decade to upgrade plants in Howard County that create engines and transmissions for its EV and hybrid vehicles.

“The significance of this investment will be felt in this community for decades,” said Charlie Sparks, President of the Greater Kokomo Economic Development Alliance. “I think people will have more confidence about investing in this community, particularly in housing, but I think it will also have impact with commercial development, retail development, housing development.”

Construction of the plant is expected to start later this year with the facility expected to open in early 2025.

The venture’s investment in the plant could gradually increase up to $3.1 billion, Mark Stewart, the chief operating officer of Stellantis North America, said at the announcement.

Samsung SDI will use its PRiMX technology to produce electric vehicle battery cells and modules for the North American market at the Kokomo plant, the companies said in a statement.

Stellantis, formed last year with the merger of Fiat Chrysler and France’s PSA Peugeot, had said it would build two electric vehicle battery factories in North America. The Kokomo plant would be the second of those plants and the first in the United States.

In March, it announced plans to spend $4.1 billion in a joint venture with LG Energy Solution of Korea to build one of the plants in Windsor, Ontario. The plant will employ about 2,500 people.

Stellantis, the world’s fourth-largest automaker, has announced plans to sell 5 million electric vehicles by 2030, with 50% of its North American passenger car and light truck sales going fully electric by 2030. Stellantis plans to sell only electric passenger cars in Europe by 2030.

Stellantis in October announced plans to spend nearly $230 million to retool three Kokomo-area factories so they can produce transmission systems that work with both traditional gasoline-powered vehicles and gas-electric hybrid versions.

“Today’s announcement is another step toward positioning Indiana as a leader in the future of mobility, battery technology and clean energy,” Indiana Gov. Eric Holcomb said in a statement.