Samsung SDI has unveiled plans to invest a substantial $2 billion in the construction of a second EV battery factory, in collaboration with American automaker Stellantis.
Samsung SDI’s strategic move was revealed during a board meeting held on September 27, where the company announced its intention to channel a staggering 2.6556 trillion Korean won (approximately $2.00 billion) into what is named the StarPlus Energy Gigafactory 2. This undertaking marks a continuation of the partnership between Samsung SDI and Stellantis, solidified through a memorandum of understanding (MOU) signed in July for the establishment of this second manufacturing facility.
Anticipated to reach completion by November 2027, the second factory will boast an impressive annual production capacity of 34 gigawatt hours (GWh). Groundbreaking for this state-of-the-art facility is slated for April of the coming year, although the precise location for Plant 2 has yet to be finalized.
Samsung SDI’s ambitious expansion initiative aligns with the U.S. Inflation Reduction Act (IRA), a driving force behind the surge in local production volume. In a previous agreement, Samsung SDI and Stellantis had already committed to scaling up the capacity of Plant 1, located in Kokomo, Indiana, from 23 GWh to 33 GWh. Construction of the first plant commenced last year and is progressing steadily.
Upon the activation of both manufacturing plants, Samsung SDI will possess a formidable 67 GWh EV battery production capacity, solidifying its position as a key supplier of batteries to Stellantis within the United States.
This substantial investment and expansion not only signify the commitment of major players in the EV ecosystem but also underscore the industry’s relentless efforts to meet the growing demand for sustainable electric mobility solutions.