Updated posts 2026
In a significant move towards enhancing the electric vehicle (EV) battery industry, Stellantis and Samsung SDI have unveiled their plans to invest over $3.2 billion in a state-of-the-art EV battery manufacturing facility, set to be located in Kokomo, Indiana.
Stellantis, a prominent automaker, is embarking on its sixth global battery plant endeavor. The unveiling of this project took place against a backdrop of intense labor disputes and contract negotiations between Stellantis and the United Auto Workers (UAW) union. Notably, UAW President Shawn Fain, hailing from Kokomo, was at the forefront of these discussions.
The significance of battery plants has become a focal point in the ongoing labor negotiations. The UAW regards employment in the EV battery sector as pivotal for its long-term sustainability. Just last week, General Motors made headlines by agreeing to incorporate EV battery plant workers into the company’s national labor agreement with the union. Shawn Fain referred to this development as a “transformative win.”
At the heart of the dispute is a structural difference between old and new plants. Battery facilities are typically built as joint ventures between automakers and overseas cell manufacturers, which places them outside the master agreements covering traditional engine and transmission workers. Wages at these sites have often started well below what assembly plant employees earn after decades of bargaining. As combustion engine work winds down, the union’s concern is that a generation of jobs will be replaced by lower-paid equivalents unless the new plants are brought under the same contracts.
In response, Fain expressed expectations that Stellantis and Ford Motor would follow suit, integrating battery plant workers into their future contract agreements. He stated, “The plan was to phase out engine and transmission plants and permanently replace them with low-wage battery jobs. We had a different plan, and our plan is winning at GM. And we expect it to win at Ford and Stellantis as well.”
Stellantis declined to divulge specific details regarding the ongoing negotiations or the precise timing of this announcement.
The role of EV battery plants in Stellantis’ strategic plans cannot be understated. These facilities are crucial for the production of electric versions of vehicles like the Ram pickup truck and Dodge muscle car.
This new battery plant in Kokomo marks the second facility resulting from the partnership between the automaker and Samsung SDI, known as StarPlus Energy. Together, these two plants are projected to generate 2,800 new employment opportunities, as confirmed by the company.
The initial StarPlus Energy battery plant, with a budget of $2.5 billion, is currently under construction and is scheduled to commence production in the first quarter of 2025. Subsequently, the second plant is anticipated to start producing battery cells in early 2027.
Mark Stewart, Stellantis COO North America, expressed his enthusiasm, stating, “Our battery ecosystem is the cornerstone of our electrification strategy, and our valued partners Samsung SDI, the State of Indiana, and the City of Kokomo have presented a compelling case for establishing our sixth gigafactory in Kokomo.”
This significant investment is poised to drive the growth of EV technology and job creation in the region, marking a pivotal moment in the automotive industry’s transition towards electrification.
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