Stellantis has announced its plan to invest $155 million in three plants located in Kokomo, Indiana. The investment will be used to produce electric drive modules (EDM) that will help power the company’s future electric vehicles assembled in North America. The move is a step towards achieving the goal of 50% battery-electric sales in the U.S. by 2030.
The Kokomo-built EDM will be integrated into vehicles designed on the STLA Large and STLA Frame platforms. The EDM will offer an all-in-one solution for electric-vehicle powertrains, comprising three main components: the electric motor, power electronics, and transmission. These components will be combined into a single module to deliver improved performance and range at a competitive cost. The optimized efficiency of the new EDM will help each platform achieve driving range of up to 500 miles (800 km).
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“With more than 25 battery-electric vehicle launches planned in the U.S. between now and 2030, we are setting the foundational elements for the North American market,” said Carlos Tavares, Stellantis CEO. “By combining the benefits of the EDM with our new BEV-centric platforms and innovative battery technologies, we will offer our customers a variety of electric vehicles with unparalleled performance and range at more affordable prices. And with our in-house manufacturing capabilities and expertise, we will do it with greater flexibility and efficiency.”
The investments will be made at the Indiana Transmission, Kokomo Transmission, and Kokomo Casting plants. The gearbox cover will be cast at Kokomo Casting and machined at Kokomo Transmission. Gear machining and final assembly will be done at the Indiana Transmission Plant. Production is expected to start in the third quarter of 2024, following retooling.
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The investment will help retain more than 265 jobs across all three plants, leveraging the core manufacturing competencies of the local workforce in the areas of casting, machining, and assembly, which will be needed as the market transitions to an electrified future.
“These investments support Stellantis’ ambition to achieve net-zero carbon by 2038, as set out in its Dare Forward 2030 strategic plan,” said Mark Stewart, Stellantis North America COO. “The city of Kokomo and the state of Indiana have been great partners for many years. This community will continue to play a central role in our efforts to provide safe, clean, and affordable mobility solutions for our customers long into the future.”
Since 2020, Stellantis has invested nearly $3.3 billion in Indiana to support its transition to electrification. This includes recent announcements of $643 million to produce a new engine for conventional and PHEV applications, a next-generation eight-speed transmission, and a gigafactory joint venture with Samsung SDI.
