The rezoning and annexation into the city of Kokomo of more than 200 acres of land set to be the new home of the 3.3-million-square-foot factory Stellantis and Samsung SDI will jointly operate to produce batteries for electric vehicles is now underway.
On Monday, the Kokomo City Council approved on first reading to annex into the city some 214 acres of land just southeast of the Kokomo Engine Plant and directly east of the 142 acres the city and county bought originally for a multi-tenant industrial park. A second and final reading is likely to be held at the council’s next meeting July 25.
That was followed by the Kokomo Plan Commission on Tuesday giving a favorable recommendation for the requested rezoning of some 264 acres, most of which are also part of the annexation, from largely agriculture to High Intensity Industrial/Heavy Manufacturing. The rezoning request will now head to City Council for a vote.
Both the annexation and rezoning are expected to sail through City Council without much debate or discussion.
The two measures are necessary for development plans to be drafted, and eventually construction to begin, on the massive battery factory that will make the northeast boundary of the city a large heavy industrial area.
Construction is set to begin on the facility later this year, with a planned launch in the first quarter of 2025. The plant will employ 1,400 and is an estimated $2.5 billion investment.
The project was announced in May at Ivy Tech Kokomo, where officials with both Stellantis and Samsung touted the local workforce, the city’s infrastructure and the caliber of students graduating from the college as major reasons for choosing Kokomo for the project.
Mark Steward, COO of Stellantis North America, said it made sense to bring the plant to Kokomo, where the company recently opened the engine plant producing motors that can be used in both traditional gas vehicles as well as hybrid vehicles. In October, the company also announced plans to retool three local plants to produce 8-speed transmissions for electric and hybrid vehicles.
“This is a key piece of our strategy,” Steward said about the battery plant in May. “This ensures that the Kokomo community continues to play a central role in our company’s efforts to provide safe, clean and affordable mobility to our customers today and into the future.”
The project is a major step toward Stellantis fulfilling its strategic plan, called Dare Forward 2030, to have global annual battery electric vehicles sales of 5 million by 2030. In the U.S., the plan calls for 50% of sales to be made up of battery electric passenger cars and light-duty trucks.
The new Kokomo facility aims to have an initial annual production capacity of 23 gigawatt hours (GWh), with the goal to increase to 33 GWh in the next few years. The company said the total capacity would increase further as demand for Stellantis’ electric vehicles is expected to rise.
The facility will be built on land city and county officials originally sought to develop into a multi-tenant industrial park given its proximity to the Kokomo Engine Plant and U.S. 31.
The city, county and the Greater Economic Development Alliance spent more than $2.6 million to acquire the 142 acres. A month earlier, Stellantis told the city it was considering Kokomo for the site of its new battery plant. The 142 acres then became a perfect incentive to entice Stellantis and Samsung SDI to choose Kokomo for the joint venture.
