Stellantis, in collaboration with Samsung SDI, has established two battery factories in Indiana and is now eyeing the construction of a third facility in the United States. Under a preliminary agreement with the United Auto Workers (UAW) union, Stellantis has committed to building a new battery plant with an as-yet-unnamed partner.
This $3.2 billion cell factory is slated to be constructed in Belvidere, Illinois, creating approximately 1,000 job opportunities in the region. At first glance, the choice of location might appear unusual, given that the Belvidere vehicle plant ceased operations in February. However, the provisional agreement aims to restart production at the site, with plans to manufacture 80,000 to 100,000 mid-size pickup trucks annually starting in 2027. The specific model to be produced in Belvidere has not been disclosed.
Stellantis has refrained from commenting on the matter, indicating that they will await the outcome of the workers’ vote before delving into the details of the agreement.
StarPlus Energy, a joint venture between Stellantis and Samsung SDI, has been busy constructing a cell factory in Kokomo, Indiana, since March 2023. This facility is expected to become operational in the first quarter of 2025, boasting an annual production capacity of 33 GWh. Recently, StarPlus Energy announced intentions to establish a second battery plant at the same location, with a combined capacity of 34 GWh.
The $3.2 billion investment in the second Kokomo factory suggests that the cell factory in Belvidere may be of a similar scale. However, it remains uncertain whether Stellantis will once again partner with Samsung SDI or explore other options to enhance supply chain diversity and reduce dependency.
The type of cells to be manufactured at the Belvidere facility also remains undisclosed. Ford, a US competitor, is known to produce NCM cells through its collaboration with SK On in the BlueOvalSK joint venture. Meanwhile, cost-effective LFP cells are manufactured using CATL technology, although not through a joint venture, to qualify for US subsidies.
Stellantis’ new investments in the United States encompass $1.5 billion for the Jeep plant in Toledo, Ohio, where an all-electric Jeep Wrangler is slated for production from 2028. Additionally, Stellantis plans to invest $3.5 billion in three assembly plants in Michigan, including $1.5 billion in a Detroit facility to manufacture new versions of the Dodge Durango and Jeep Grand Cherokee, including all-electric variants, starting in 2026 and 2027.
The UAW recently reached agreements with the “big three” automakers at the end of October, concluding a six-week strike at GM, Ford, and Stellantis plants. These agreements encompass not only substantial investment commitments but also wage increases for workers.
