Technology
Wednesday, October 11th, 2023 2:12 pm EDT
Key Points
- Investment in New EV Battery Plant: Samsung SDI and automaker Stellantis are planning to invest over $3.2 billion in a new electric vehicle (EV) battery plant located in Kokomo, Indiana. This facility marks Stellantis’ sixth battery plant announcement on a global scale.
- Significance Amidst Labor Disputes: The announcement of the new battery plant in Kokomo is particularly noteworthy due to its timing amid ongoing contentious labor strikes and contract negotiations between Stellantis and the United Auto Workers (UAW) union. UAW President Shawn Fain, who hails from Kokomo, has been a central figure in these negotiations.
- Labor Talks and EV Battery Jobs: Battery plants have become a focal point in labor discussions, with the UAW considering EV battery jobs as vital to its long-term viability. General Motors recently included workers at its EV battery plant in its national contract with the UAW, seen as a significant victory. The UAW expects both Stellantis and Ford to follow suit by incorporating battery plant workers into future contract agreements.
- Stellantis’ Electrification Plans: EV battery plants play a pivotal role in Stellantis’ plans to manufacture electric versions of vehicles such as the Ram pickup truck and Dodge muscle cars.
- Joint Venture and Job Creation: The new battery plant in Kokomo is the second to be planned through a joint venture named StarPlus Energy, formed by Stellantis and Samsung SDI. These two plants are expected to create 2,800 new jobs. The first $2.5 billion battery plant for StarPlus Energy is currently under construction and set to commence production in early 2025. The second plant is anticipated to begin producing battery cells in early 2027.
- Electrification Strategy: Mark Stewart, Stellantis COO North America, emphasized the importance of the battery ecosystem as the foundation of the company’s electrification strategy. He acknowledged the contributions of Samsung SDI, the State of Indiana, and the City of Kokomo in making the new battery plant a reality.
Samsung SDI and automaker Stellantis have announced plans to invest over $3.2 billion in a new electric vehicle (EV) battery plant located in Kokomo, Indiana. This facility marks Stellantis’ sixth battery plant announced worldwide and is of particular significance due to its location and timing. The announcement comes amidst ongoing labor strikes and contract negotiations between Stellantis and the United Auto Workers (UAW) union.
Battery plants have emerged as a central issue in labor negotiations, as the UAW considers EV battery jobs essential for its long-term sustainability. Recently, General Motors (GM) agreed to include workers at its EV battery plant in its national contract with the UAW, a development hailed as a “transformative win” by UAW President Shawn Fain. Fain anticipates that both Stellantis and Ford Motor will follow suit, integrating battery plant workers into future contract agreements.
The new battery plant is critical to Stellantis’ plans to produce electric versions of vehicles like the Ram pickup truck and Dodge muscle cars. It is the second battery plant planned for Kokomo through a joint venture named StarPlus Energy, formed by Stellantis and Samsung SDI. These two plants are expected to create 2,800 new jobs. The first $2.5 billion battery plant, also part of StarPlus Energy, is under construction and scheduled to commence production in early 2025, while the second plant is slated to start producing battery cells in early 2027. Stellantis COO North America, Mark Stewart, emphasized the significance of the battery ecosystem as the foundation of the company’s electrification strategy and acknowledged the support from Samsung SDI, the State of Indiana, and the City of Kokomo in making this project possible.
For full original article on CNBC, please click here: https://www.cnbc.com/2023/10/11/stellantis-samsung-sdi-to-build-ev-battery-plant-in-indiana.html
