KOKOMO, Ind. – Stellantis and Samsung SDI will invest more than $3 billion to build a second battery plant in Indiana.
The Kokomo “gigafactory” facility will produce batteries for electric vehicles. It’s expected to create about 1,400 jobs. The companies previously announced plans in May 2022 to build an EV battery facility in the city. Also expected to create 1,400 jobs, it’s set to open in 2025.
The second plant will be built adjacent to the first one, the companies said. It’s slated to open in 2027.
“Indiana’s economy is on a roll,” said Gov. Eric 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.”
This will mark the sixth battery facility to support Stellantis’ ambitious plans to expand its electric vehicle line. The parent company of Chrysler, Dodge, Jeep and other brands aims to reach a 100% passenger car battery electric vehicle (BEV) sales mix in Europe and 50% passenger car and light-duty truck BEV sales mix in the U.S. by 2030.
“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.”
The Indiana Economic Development Corporation committed up to $37.5 million in conditional tax credits and up to $2 million in conditional training grants based on the joint venture’s investment and job creation plans. 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.
IEDC said the incentives are performance-based, with the companies eligible to claim them only after making their investments and hiring workers. The incentives are pending the approval of the IEDC Board of Directors.
The city of Kokomo, Greater Kokomo Economic Development Alliance Inc., Howard County, Duke Energy Indiana and Northern Indiana Public Service Company supported the plan with additional incentives.