July 22, 2024


Where Innovation Lives

Automakers are investing billions in batteries for EVs

4 min read


Stellantis, the enterprise in demand of US car brands Jeep, Chrysler, Dodge, Ram, Fiat, and Alfa Romeo, announced on Could 24 that it would be partnering with Samsung to establish a new $2.5 billion electric powered motor vehicle battery production facility in Kokomo, Indiana. Stellantis has its sights set on providing five million battery-electrical autos per yr by 2030, and it is likely to want a significant raise to reach that purpose the intercontinental conglomerate doesn’t at the moment provide any electric powered cars for sale in the US. 

The site in Kokomo is centrally situated for numerous of Stellantis’ midwest-based mostly vehicle assembly vegetation, and in close proximity to the company’s supplier base. Design is scheduled to start out afterwards this calendar year, with generation ability on the net by 2025. The enterprise initiatives the new assembly plant will produce about 1,400 new careers, and will be operated as a joint venture alongside brand husband or wife Samsung. 

“Just beneath just one year in the past, we committed to an intense electrification strategy anchored by 5 gigafactories in between Europe and North The united states,” reported Carlos Tavares, CEO of Stellantis, in a release. “Today’s announcement even further solidifies our world battery production footprint and demonstrates Stellantis’ push toward a decarbonized foreseeable future outlined in Dare Forward 2030.”

So how do Stellantis’ ideas stack up towards what’s already going on in the EV production landscape?

Tesla now has the most significant EV battery plant in the entire world, running its Gigafactory in conjunction with Panasonic outside of Reno, Nevada. So-termed Giga Nevada was opened in 2016, and currently produces battery packs for quite a few Tesla vehicles. The $5-billion facility was intended and designed by Tesla with all-around $1.5 billion coming in the form of state assist and deferred taxes. The plant is intended not only to make new Tesla 2170 nickel manganese cobalt lithium ion battery cells (21mm diameter, 70mm size), but also to recycle utilized cell components into new battery packs. Tesla also generates its 4680 batteries at the just lately opened Giga Texas plant in the vicinity of Austin, however this factory’s primary purpose is auto development, and will allegedly be the residence of Cybertruck creation, if that automobile is produced.

Other automakers are busy in the discipline, also. Typical Motors is developing its have battery plant with LG in Lansing, Michigan. Ford, furthermore, is performing with SKI to build an EV battery lab in southeast Michigan. Volkswagen is thinking about set up of a new battery plant in the vicinity of its US manufacturing facility in Chattanooga, Tennessee. Hyundai is investing some $5.5 billion to construct a devoted electric vehicle and battery plant outside of Savannah, Georgia. 

Stellantis by itself a short while ago introduced the building of a $4.1 billion joint enterprise plant with LG in Canada. Even newcomer Rivian is hunting to expand functions with a new $5 billion plant in the vicinity of Atlanta, Georgia for battery output and vehicle assembly. These new battery output facilities are just the tip of the iceberg when it arrives to expense in the long run of car generation.

Numerous electric auto producers purchase their battery packs from exterior suppliers, like A123, Panasonic, LG, Samsung, and Amperex. In actuality, Stellantis now contracts with Amperex, LG, and Samsung to make battery packs for its a variety of international EV and hybrid merchandise. That stated, several automakers are pursuing Tesla into the small business of manufacturing their very own batteries in stand-by yourself battery factories. This technique will help lessen creation bottlenecks and decreases cost for each device substantially. 

The Stellantis prepare for transitioning to an all-EV lineup is led by its European brands: Fiat, Citroën, Peugeot, and Opel in certain. By 2030 the corporation pledges to only sell EVs in Europe, and at minimum 50 % EVs in the US sector, with an specific prepare for every single of its automaker makes to obtain this changeover. In accordance to Stellantis, it will have at the very least 75 BEV nameplates globally, and 25 of these will be offered in the US. 

The first new battery electrical design from the corporation is scheduled to hit the US sector in 2023 as a small urban Jeep, based on its Compass compact crossover. Jeep is, of program, currently viewing lots of good results in its plug-in hybrid Wrangler 4xe models, marketing them as quickly as it can generate them. Through final year’s Stellantis EV Working day, Jeep was rebranded with the tagline “Zero Emissions Freedom” and it looks like the firm is prepared to supply on that assure. 

Stellantis’ Chrysler model a short while ago announced the re-introduction of the Airflow design following an 86-calendar year hiatus, as a luxury electric powered crossover with amongst 350 and 400 miles of selection. The winged brand’s new tagline was launched very last calendar year as “Clean engineering for a new generation of family members.” Similarly, Ram was rebranded as “Built to serve a sustainable planet” and functionality-oriented Dodge now holds the tagline of “Tear up the streets, not the planet.” 

This plant in Kokomo will be 1 of five Stellantis EV battery amenities throughout the world. The company’s authentic system known as for production of all over 140 gigawatts of battery storage, but this was expanded to about 400 gigawatts as need and marketplaces have modified. Not only will Stellantis have to have all five of these vegetation to satisfy escalating EV demand from customers, but it will carry on to obtain battery packs from exterior suppliers. 


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