Securing Battery Production Bases in the U.S.
President Choi Yoon-ho: "A Solid Footing in the North American Electric Vehicle Market"
[Asia Economy Reporter Oh Hyung-gil] Samsung SDI is establishing its first electric vehicle battery cell and module joint venture in the United States with automaker Stellantis in Kokomo, Indiana.
On the 24th (local time), the two companies held an investment announcement event with the Indiana state government in Kokomo, Indiana, and signed a joint venture (JV) establishment agreement.
The signing ceremony was attended by government officials including Eric Holcomb, Governor of Indiana; Bradley Chambers, Indiana Secretary of Commerce; Tyler Moore, Mayor of Kokomo; as well as Samsung SDI CEO Choi Yoon-ho and Stellantis North America COO Mark Stewart.
The joint venture is scheduled to begin construction of the factory by the end of this year and start full-scale operations from the first quarter of 2025. Initially, it will start producing electric vehicle battery cells and modules with an annual capacity of 23GWh, expected to expand to 33GWh, with investment expected to increase up to $3.1 billion (approximately 3.92 trillion KRW).
Stellantis' parts manufacturing plant is already operating in Kokomo, Indiana, and with the addition of the joint battery production plant, Indiana is expected to become the forward base for Stellantis' electric vehicle production in North America.
The batteries produced by the joint venture will incorporate Samsung SDI's latest technology represented by 'PRiMX.' PRiMX is a brand launched by Samsung SDI at the end of last year, the first in the battery industry, first unveiled at CES 2022, the largest home appliance exhibition in January this year, and it refers to all batteries produced by Samsung SDI.
Choi Yoon-ho, President of Samsung SDI, said, "We thank the Indiana state and Stellantis officials who helped select the joint venture site," adding, "Through the joint venture with Stellantis, we have established a solid foothold in the rapidly growing North American electric vehicle market and will contribute to achieving climate change goals going forward."
Carlos Tavares, CEO of Stellantis, said, "A year ago, we pursued an aggressive electrification strategy based on five gigafactories in Europe and North America," adding, "This announcement demonstrates Stellantis' momentum toward a 'decarbonized future' mentioned in 'Dare Forward 2030' and is expected to further strengthen our global battery production strategy."
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