Stellantis and Samsung SDI will build a new U.S. battery plant in Indiana as the Chrysler-parent ramps up EV production plans.
Targeted to start operations in 2025, the plant aims to have an initial annual production capacity of 23 gigawatt hours, with an aim to increase to 33 GWh in the next few years.
The joint venture will create 1,400 new jobs and investment could gradually increase to up to $3.1 billion.
Stellantis is boosting production of plug-in hybrids but has lagged some competitors in launching battery-electric vehicles in the United States.
Stellantis North America Chief Operating Officer Mark Stewart on Tuesday acknowledged the automaker was behind "when it comes to bringing the BEVs to this marketplace, but not much."
Last year, Stellantis said it planned to pump $35 billion into electric vehicle production and software globally through 2025.
Stellantis has had strong sales of plug-in hybrid vehicles and is launching its Jeep Grand Cherokee plug-in hybrid this month.
Kerrigan Advisors recently sat down with Donnie and Denny Buckalew, co-owners of Buckalew Chevrolet, the 5th highest-volume Chevrolet dealership in Houston, Texas, to discuss their perspective on the changing auto retail industry and how challenges facing single-point dealers influenced their decision to sell their dealership.
The companies in October announced they were forming a joint venture for lithium ion battery production in North America.
Samsung SDI CEO Yoonho Choi said the company has "secured a solid foothold in a rapidly growing North American EV market through the joint venture with Stellantis."
Samsung SDI will be using its technology PRiMX to produce battery cells and modules for North America.
