The companies have officially signed a memorandum of understanding on the plant, pledging to build it as part of the StarPlus Energy joint venture. To refresh your memory, that's the $2.5-billion initiative announced by the partners in May 2022 to manufacture lithium-ion batteries at a new plant in Kokomo, Indiana. The second plant will target an annual production capacity of 34 gigawatt-hours (GWh), slightly more than the Kokomo facility which initially was slated for 23 GWh but has since been bumped to 33 GWh.
It's worth noting that a memorandum of understanding leaves considerable room for adjustment. As such, there are very few details available and the bits we do know aren't necessarily set in stone. It's also unclear how much this new plant will cost, but as a reminder, the current project comes with a $2.5 billion price tag.
"This new facility will contribute to reaching our aggressive target to offer at least 25 new battery electric vehicles for the North American market by the end of the decade," said Stellantis CEO Carlos Tavares. "We are continuing to add more capacity in the United States together with our great partner Samsung SDI and laying the next steps to reaching our carbon neutrality commitment by 2038."
In the near term, Stellantis and Samsung SDI plan to have the Kokomo plant up and running in early 2025. Further north, Stellantis is working with LG on a larger 45 GWh factory that could begin operation in the first quarter of 2024.
Source: Stellantis
