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Daily Newsletter

12 October 2023

Daily Newsletter

12 October 2023

Stellantis details second JV battery plant for US

A second factory for Kokomo, Indiana

Graeme Roberts October 12 2023

Samsung SDI has chosen Kokomo, Indiana as the location for its second US electric vehicle (EV) joint venture battery plant with Stellantis.

The JV, StarPlus Energy, is already building a Kokomo factory with capacity for 33GWh of batteries per year from early 2025. Samsung SDI has a 51% stake with Stellantis holding the rest.

The second plant is scheduled to be complete in 2027 with capacity of 34 GWh, giving the JV total capacity of 67 GWh per year or enough to power 1m EVs.

Samsung SDI said it will invest US$2bn in the factory, proportionate with its JV equity, and Stellantis will spend around US1.9bn.

The batteries will qualify for tax credits under the Inflation Reduction Act and will be sold mainly to Stellantis EV factories in North America.

High upfront costs could be detrimental towards the growth of the off-highway EV market

The global off-highway electric market is expected to grow at a CAGR of 17.4% by 2030, per GlobalData. Despite the strong growth, high upfront costs may pose a challenge. Due to the high capacity of these vehicles, they consume large amounts of power from a number of battery packs installed on the vehicle, whose high cost in turn adds to the cost of the vehicle, thereby increasing the initial cost. However, governments worldwide are offering subsidies and tax exemptions in order to help customers to counter the initial purchase cost.

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