Battery manufacturer Samsung SDI is making a significant foray into the U.S. electric vehicle (EV) battery market, announcing plans to invest $1.98 billion in its second battery factory in collaboration with Stellantis, a leading global automaker. This strategic move was unveiled in a regulatory filing by the South Korea-based company on September 27.
The investment is slated to span from April to November 2027, marking a substantial commitment to the rapidly growing EV sector. It will also grant Samsung SDI a commanding 51% ownership stake in Starplus Energy, a joint venture with Stellantis dedicated to producing batteries for electric vehicles. This increased ownership share reflects Samsung SDI's drive to strengthen its presence in the EV battery market.
While Samsung SDI has yet to provide detailed comments on this development, the move aligns with the company's broader expansion strategy in the US. This expansion drive recently gained momentum with an announcement from the state of Mich.. Samsung SDI will invest $41 million to expand two of its existing facilities in Auburn Hills, Mich., a move aimed at doubling the manufacturing capacity of these plants. Furthermore, this expansion initiative is expected to create approximately 368 new job opportunities in the region.
Samsung SDI America's general counsel and vice president of legal and public affairs, Joe Pittel, expressed enthusiasm about the expansion, stating, "This expansion plan, critical to our operations, will allow us to better support our customers and will result in hundreds of new jobs for those eager to take part in the electrification revolution."
This news comes on the heels of the joint endeavor between Samsung SDI and Stellantis to construct a massive $2.5 billion EV battery production plant in Kokomo, Indiana. This ambitious facility is anticipated to commence production in 2025, with a projected annual capacity of 23 gigawatt hours. The plant's design also incorporates the flexibility to ramp up production to 33 GWh annually, showcasing the partners' commitment to meeting the growing demand for EV batteries in the US market.
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