The investment is valued at more than $2.5 billion (2.3 billion euros) with the potential to gradually increase to $3.1 billion (2.9 billion euros).
The battery plant will be built in Kokomo, Indiana, where Stellantis already has three plants (engine, casting and transmission) that will create about 1,400 new jobs. Work on the construction of the plant is scheduled to begin at the end of this year, and the start of production is expected in the first half of 2025. The plant will have an initial production capacity of 23 GWh per year, and then increase the capacity to 33 GWh.
Stellantis expects annual sales of battery electric vehicles to reach 5 million vehicles by 2030 (100% of BEV passenger car sales in Europe and 50% of BEV passenger car and light truck sales).
The company increased its projected demand for batteries by 140 GWh to 400 GWh per year (which equates to 80 GWh per vehicle if we combine that with 5 million BEVs). The plan is to build 5 battery gigafactories (joint ventures) and continue to buy batteries from external suppliers.
Stellantis' long-term electrification strategy will require an investment of $35 billion (€30 billion) through 2025 (electrification and software worldwide).