Stellantis, the maker of Jeep and Chrysler, is expanding its battery production capacity in the US with a new plant in Kokomo, Indiana. The plant will be part of its joint venture with Samsung SDI, called StarPlus Energy, and will start operating in 2027.

According to a report, the new plant will have an annual capacity of 34 GWh, enough to power about 500,000 electric vehicles (EVs). It will be the second StarPlus Energy plant in Kokomo, where construction is already underway on the first one, which will have a similar capacity and will open in 2025.

The total investment for both plants will be over $6.3 billion, creating 2,800 new jobs in the area. This is part of Stellantis’ ambitious plan to electrify its vehicle portfolio and achieve carbon net zero by 2038.

Stellantis is one of the world’s largest automakers, formed by the merger of Fiat Chrysler and Peugeot in 2021. It has 14 brands, including Dodge, Ram, Alfa Romeo, Maserati, and Opel. It sells vehicles in over 130 countries and has more than 300,000 employees.

Stellantis is aiming to have a 100% BEV sales mix in Europe and a 50% BEV sales mix in the US by 2030. To meet this demand, it needs to secure about 400 GWh of battery capacity, which is equivalent to 10 times the current global production.

Stellantis is not alone in its quest for battery supremacy. Other major automakers, such as Tesla, Volkswagen, Ford, and General Motors, are also investing heavily in battery production and technology. They are competing for market share and customer loyalty in the fast-growing EV sector.

The EV market is expected to grow from $162 billion in 2019 to $802 billion by 2027, according to Allied Market Research. The main drivers for this growth are the increasing environmental awareness among consumers, the supportive government policies and incentives, and the declining battery costs.

However, there are also some challenges and risks facing the EV industry. These include the availability and sustainability of raw materials for batteries, such as lithium, cobalt, and nickel; the reliability and safety of battery performance; the interoperability and accessibility of charging infrastructure; and the consumer preferences and behaviors regarding EV adoption.

Stellantis is aware of these challenges and is working to address them. It is collaborating with various partners and stakeholders to ensure a responsible and transparent supply chain for batteries. It is also developing innovative battery technologies that can improve efficiency, durability, and recyclability. It is supporting the development of charging networks that can offer convenience and affordability to EV owners. And it is offering a diverse range of EV models that can cater to different customer needs and tastes.

Stellantis’ announcement of its second US battery plant shows its commitment and confidence in its electrification strategy. It also shows its recognition of the importance of the US market for its future growth. The US is currently the second-largest EV market in the world after China, accounting for about 17% of global EV sales in 2020.

Stellantis’ shares rose by 2.5% to $20.08 in pre-market trading on Wednesday, reflecting the positive market reaction to its news. The company’s stock has gained about 40% since its debut on the New York Stock Exchange in January, outperforming its peers such as Ford and GM.

Stellantis hopes that its investment in battery production will pay off in the long run by giving it a competitive edge in the EV market. It also hopes that its customers will appreciate its efforts to provide them with clean, safe, and affordable mobility options that can reduce their environmental impact.