Both companies said operations at the lithium ion battery plant are expected to start in 2025 with an initial annual production capacity of 23 gigawatt hours and the ability to increase to up to 40 gigawatt hours in the future.
The companies did not immediately comment on Monday, but Stellantis said it would provide an update on the future of its Kokomo operations on Tuesday that would include its North American chief operating officer Mark Stewart and Indiana Governor Eric Holcomb.
The JV battery plant is expected to be built near Stellantis engine, casting and transmission plants in Kokomo, Indiana, the sources said, declining to be named because the announcement is not yet public.
In October, Stellantis said it would invest $229 million in its three Kokomo plants to produce electrified, eight-speed transmissions.
Stellantis-LGES Plant in Canada
In March, Stellantis and LG Energy Solution said they would invest $4.1 billion for a joint venture lithium-ion battery production plant in Canada that will have an annual production capacity in excess of 45 gigawatt hours. The companies plan to begin operations in 2024.
President Joe Biden, at a visit to Samsung Electronics Pyeongtaek campus in South Korea on Friday, highlighted the planned investment, saying “Samsung will also be working with Stellantis on a joint venture to build a new facility in the United States that will manufacture batteries for electric vehicles.”
He urged the companies to “enter into partnerships” with “American union members” and said JVs “that manufacture electric vehicle batteries would be made stronger by collective bargaining relationships with America unions.”
Biden backed legislation last year that would give union-assembled US-built electric vehicles an additional $4,500 tax credit but that stalled in Congress.
- Reuters with additional editing by Jim Pollard