Stellantis making $155M EV investment in Kokomo
European automaker Stellantis (NYSE: STLA) is planning to invest $155 million in three of its facilities in Kokomo. The company said Tuesday the investment will fuel the production of a new electric drive module, which will be used in its battery electric vehicles.
Stellantis, which is also building a $2.5 billion EV battery manufacturing facility in Kokomo through a joint venture with South Korea-based Samsung SDI, says the new investment will help retain 265 jobs across the three plants.
The electric drive module, or EDM, includes the electric motor, power electronics and transmission for the automaker’s EV powertrains. The company said the gearbox will be cast at the Kokomo Casting plant and machined at the Kokomo Transmission plant, with final assembly taking place at the Indiana Transmission plant.
Stellantis said the EDM will be integrated into the battery EVs designed for its STLA Large and STLA Frame platforms, and will help the vehicles achieve a driving range up to 500 miles.
Production is slated to begin in the third quarter of 2024.
“These investments will leverage the core manufacturing competencies of the local workforce in the areas of casting, machining and assembly, all of which will be needed even as the market transitions to an electrified future,” Stellantis North America Chief Operating Officer Mark Stewart said in a news release. “This community will continue to play a central role in our efforts to provide safe, clean and affordable mobility solutions for our customers long into the future.”
Stellantis is aiming to reach 50% battery electric sales in the U.S. by 2030 and achieve carbon net zero emissions by 2038.
The Indiana Economic Development Corp. said Tuesday it is working to finalize a performance-based incentive package, and the city of Kokomo is considering additional incentives.
“This investment reflects the confidence that Stellantis has in our community and its workers,” said Kokomo Mayor Tyler Moore. “The bond between the company and our local workforce continues to strengthen every day. We are grateful Stellantis has placed Kokomo and Howard County at the forefront of the move towards electric vehicles.”
Stellantis is the 18th largest employer with more than 7,000 Hoosier employees across its locations in Kokomo and Tipton, according to IBJ research.
The company said it has invested nearly $3.3 billion in its Indiana operations since 2020. In addition to the planned EV battery plant, the automaker is investing $643 million to produce a new engine and a next-generation, eight-speed transmission.
Stellantis, formed in 2021 from the merger of Fiat Chrysler and France’s PSA Peugeot, announced last week that U.S. employees represented by the United Auto Workers union will receive profit-sharing checks of about $14,760 on March 10.