Stellantis and Samsung SDI are establishing a new joint-venture gigafactory in Kokomo, Indiana, with more than $3.2 billion going into the project.

The factory is set to be co-located with an existing StarPlus Energy battery plant in Kokomo, with the facilities offering a combined annual production capacity of 67 gigawatt-hours.

More than $6.3 billion will be invested into both facilities, Kallanish notes, with the Indiana Economic Development Corporation set to provide up to $59.5 million in various tax credits and $115m in conditional structured performance payments. Additional local and state groups have offered incentives.

Construction on the first StarPlus Energy gigafactory, with an annual production capacity of 33 GWh, is underway.

“Through construction of the second battery plant of StarPlus Energy, Samsung SDI will be establishing its largest production base for electric vehicle batteries in North America,” says Samsung SDI president and ceo Yoon-ho Choi.

Production at the first gigafactory is expected to begin in Q1 2025, while the second facility will start production in early 2027. This factory will help bolster Stellantis’ EV efforts, giving it a tighter North American supply chain. It will be Stellantis’ sixth facility in Kokomo, which is already home to four plants focused on engine and transmission manufacturing.

Stellantis aims to reach a 50% mix of passenger car and light-duty truck battery electric vehicle (BEV) sales in the US by 2030 and a 100% BEV sales mix in Europe. To help facilitate this, the automaker is looking to secure approximately 400 GWh of battery capacity. Stellantis has additional battery plants in development, including a JV EV battery plant in Ontario, Canada.