(Bloomberg) —
Stellantis NV and South Korea’s Samsung SDI Co. have signed an agreement to build a second US battery plant as the automaker expands its range of electric vehicles.
The factory will start production in 2027 and have initial capacity of 34 gigawatt-hours, Samsung SDI said in an emailed statement Monday.
Stellantis and Samsung SDI last year announced plans to build a $2.5 billion battery plant with annual capacity of 33 gigawatt-hours in Kokomo, Indiana. A site for the second factory hasn’t yet been chosen.
“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,” Stellantis Chief Executive Officer Carlos Tavares said statement.
Samsung SDI will accelerate its entry into the US by building the new plant, CEO Choi Yoon Ho said.
Read more: Samsung, Stellantis Invest $2.5 Billion in US Battery Plant
Stellantis, the 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 make all of its European passenger car sales fully electric by that time, as well to make half of its North American sales battery powered.
Samsung SDI is also building a $3 billion battery plant with General Motor Co.. It will have annual capacity of 30 gigawatt-hours and mass production should start in 2026.
Read more: GM, Samsung SDI Outline $3 Billion Spend on US Battery Plant
Samsung SDI shares rose as much as 2.6% in early trading in Seoul, the biggest intraday gain since July 13.
(Adds comments from chief executive officers of both companies.)
–With assistance from Gabrielle Coppola.
© 2023 Bloomberg L.P.
