[Exclusive] Samsung SDI's Trillion-Won Investment: US Kokomo Mayor to Visit Korea Next Week... Interest in Additional Cooperation Plans

Republican Mayor Tyler Moore Visits Korea
Amid Concerns Over 2nd Trump Administration's Battery Policies
Demonstrates Strong Cooperative Relationship

Samsung SDI Giheung Headquarters. Photo by Samsung SDI

The mayor of Kokomo City, Indiana, USA, where Korean companies including Samsung SDI are investing over 7 trillion won, is visiting South Korea. In Kokomo, Samsung SDI is building a battery joint factory with American automakers such as Stellantis. As the U.S. administration is about to change, attention is focused on whether additional cooperation plans, including batteries, will emerge during this visit.

According to industry sources on the 14th, Tyler Moore, the Republican mayor of Kokomo, will visit South Korea for five days from the 18th to the 22nd. During this period, Mayor Moore is expected to visit Samsung SDI, Solbrain, which is building a battery electrolyte plant in Kokomo, and Jaewon Industry, which is constructing a used battery recycling plant. Mayor Moore is likely to emphasize cooperation with Korean companies operating in Kokomo and discuss support measures. In particular, he is expected to meet with Samsung SDI executives, who are creating nearly 3,000 new jobs following large-scale investments, to discuss additional cooperation plans.

Indiana is located south of the Great Lakes in the eastern United States and is part of the Rust Belt region. Due to the U.S. Chips Act and the Inflation Reduction Act (IRA), investments in semiconductors, electric vehicles, and batteries are becoming active. SK Hynix is also investing $3.87 billion (approximately 5.4388 trillion won) in West Lafayette, Indiana, to build an advanced packaging production base for AI memory.

In particular, Kokomo is a city where Samsung SDI, together with Stellantis, one of the top three U.S. automakers, is investing $5.5 billion (approximately 7.7231 trillion won) to build two battery plants with an annual production capacity of 67 GWh. The first plant, with a capacity of 33 GWh, was originally scheduled to start operations in the first quarter of next year but is now planned to start early next month at Stellantis' request. The second plant will begin operations in early 2027. Together, the two plants will create more than 2,800 jobs.

Tyler Moore, Mayor of Kokomo, Indiana, USA, visiting Korea next week. Photo by Tyler Moore Facebook

Mayor Moore's visit to South Korea is notable as it comes after the Republican Party, his party, won the presidential election. President-elect Donald Trump has advocated for the abolition or reduction of electric vehicle subsidies under the Inflation Reduction Act (IRA). This visit could serve as an opportunity for Republican local government leaders to urge the federal government to maintain benefits through Korean companies' investments.

A battery industry official said, "Most of the regions where Korean companies have invested are politically important battleground states such as the Rust Belt and Sun Belt," adding, "A reduction in Korean companies' investments due to amendments to the IRA would lead to economic downturns in these regions. These local governments and Republican lawmakers are likely to pressure the federal government to prevent subsidy cuts."

In particular, Indiana and Kokomo are known to have offered exceptional tax benefits and incentive support plans beyond the IRA when attracting Samsung SDI's plant. According to local media, StarPlus Energy, a joint venture between Samsung SDI and Stellantis, will receive 100% reimbursement from local authorities for the costs incurred in equipment and machinery installation and land acquisition during the plant construction process. Subsidies related to equipment and machinery installation are expected to reach $1.175 billion (approximately 1.6515 trillion won) over the next 20 years. Kokomo designated the Samsung SDI and Stellantis plant sites as tax benefit zones and has also worked independently to secure infrastructure such as roads and power necessary for the plant investment.