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Samsung SDI and Stellantis have agreed to construct a second battery plant in Indiana.

As part of their StarPlus Energy joint venture, automaker Stellantis (STLA) and battery producer Samsung SDI said they will construct a second U.S. battery production plant in Kokomo, Indiana.

The firms announced a $3.2 billion investment in the new gigafactory, which they expect to start producing in 2027. It is anticipated that the facility would produce 1,400 employment and have an annual capacity of 34 gigawatt hours.

Stellantis and Samsung SDI struck to an agreement in May to build the first Kokomo gigafactory, which is now under development and expected to start producing in 2025.

Stellantis. “Stellantis and Samsung SDI To Invest Over $2.5 Billion in Joint Venture for Lithium-Ion Battery Production Plant in U.S.”

The corporations stated that it would have 1,400 employees and that more than $6.3 billion would be invested in both locations.

The maker of Jeep and other vehicle companies, Stellantis, has set a target of having 100% car battery electric vehicle (BEV) sales in Europe and 50% passenger car and light-duty truck revenue in the U.S. by 2030. CEO Mark Stewart stated that the “battery the environment is the foundation of our electrification tactics.”

Additionally, Stellantis stated that it aimed to become a carbon-neutral business by 2038.

One of the main problems of the United Auto Workers strike against the Big Three automakers that has lasted for more than three weeks is the subject of union representation at their battery manufacturing.

Following the disclosure of the second battery factory, Stellantis’ shares increased by more than 3% on Wednesday and were trading close to their July 2018 18-month high.

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