(Bloomberg) — Stellantis NV and South Korea’s Samsung SDI Co. have signed an agreement to build a second battery plant in the United States as the automaker expands its range of electric vehicles.
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The plant will begin production in 2027 and will have an initial capacity of 34 gigawatt hours, Samsung SDI said in an emailed statement on Monday.
Stellantis and Samsung SDI announced plans last year to build a $2.5 billion battery plant with an annual capacity of 33 gigawatt hours in Kokomo, Indiana. The site for the second plant has not yet been chosen.
“This new facility will help achieve our ambitious goal of offering at least 25 new battery electric vehicles for the North American market by the end of the decade,” said Stellantis CEO Carlos Tavares.
Samsung SDI will accelerate its entry into the United States by building the new factory, CEO Choi Yoon Ho said.
Read more: Samsung and Stellantis invest $2.5 billion in US battery factory
Stellantis, owner of the Jeep, Peugeot and Ram brands, has pledged to sell 5 million battery-electric vehicles by the end of 2030. It aims to have all of its European passenger car sales fully electric by then, as well as half of its North American sales battery-powered.
Samsung SDI is also building a $3 billion battery factory with General Motor Co.. It will have an annual capacity of 30 gigawatt hours and mass production is expected to begin in 2026.
Read more: GM and Samsung SDI announce $3 billion spend on US battery plant
Shares of Samsung SDI rose 2.6% in early trading in Seoul, the biggest intraday gain since July 13.
–With the help of Gabrielle Coppola.
(Adds comments from CEOs of both companies.)
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