The companies expect to start production in 2027, targeting an initial annual production capacity of 34 gigawatt-hours (GWh).

The plant location is currently under review, and the transaction is subject to the execution of definitive documentation.

"This new facility will contribute to reaching our aggressive target to offer at least 25 new battery-electric vehicles for the North American market by the end of the decade. We are continuing to add more capacity in the United States together with our great partner Samsung SDI and laying the next steps to reaching our carbon neutrality commitment by 2038," said Stellantis CEO Carlos Tavares. 

"By establishing the joint venture with Stellantis last year, we laid a solid groundwork for marking our presence in North America. The second plant will accelerate our market penetration into the U.S. and help Stellantis push forward the U.S. transition to an era of electric vehicles by supplying the products featuring the highest levels of safety and quality," stated Samsung SDI President and CEO Yoon-ho Choi.

The joint venture had a planned investment of more than $2.5 billion (€2.3 billion), which could gradually increase to $3.1 billion (€2.9 billion), for building an electric-vehicle battery manufacturing facility in Kokomo, Indiana.

Slated to open in Q1 2025, the plant aims to have an initial annual production capacity of 23 gigawatt-hours (GWh), with an aim to increase to 33 GWh in the next few years.

Price Action: STLA shares closed lower by 0.81% at $18.35 on Friday.