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Released March 03, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Stellantis (NYSE:STLA) (Amsterdam, Netherlands) said Tuesday it plans to invest $155 million in three of its Indiana plants in order to localize production of electric vehicle (EV) components and manufacture electric drive modules (EDM). The investments will support the automaker's goal of 50% EV sales in the U.S. by 2030. Industrial Info is tracking information on the plants as well as projects attributed to the company.
According to a related press release, the investments will be made at its Tipton Transmission Plant, in the Kokomo metropolitan area, and the Kokomo KTP transmission and casting plants. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Plant Database can click here to see the plant profiles.
The company said EDMs are an "all-in-one solution for electric vehicle powertrains," consisting of three main components--the electric motor, power electronics and transmission--that are then combined into a single module to deliver improved performance and range.
The EDMs will initially be built and cast at the two Kokomo facilities, according to the press release, while gear machining and final assembly will be at the Tipton plant--where the company expects production to begin in the third quarter of 2024.
Industrial Info is tracking three active projects at the Kokomo facilities, where Stellantis currently assembles active and next-generation transmissions, and produces components, for several of the automaker's Jeep, Chrysler and Dodge models.
The company expects to kick off a $90 million upgrade project at the KTP transmission plant later this month, with completion expected at the end of the year. It entails retooling production equipment and supporting systems at the 3.1 million-square-foot facility by performing equipment modifications and upgrades.
At the 625,000-square-foot die-casting facility, a $76.3 million equipment addition kicked off late last year, and completion is expected in early 2024. The addition will allow the plant to produce next-generation EV and hybrid transmissions. Also underway at the facility is a conversion/upgrade project, which entails converting existing die-cast machines and cells for Stellantis' new hybrid-EV engine. Completion is expected in 2025.
Subscribers to the GMI Industrial Manufacturing Project Database can see detailed reports on the KTP transmission, and casting equipment addition and conversion projects.
Stellantis currently operates a total of five plants in Indiana. Click here to see a full list of plant profiles.
In the latest press release, the company said it has invested almost $3.3 billion in Indiana since 2020 to support the company's transition to EVs. This includes more than $2.5 billion in its joint venture with Samsung SDI America Incorporated, a subsidiary of Samsung Group (Seoul, South Korea): a lithium-ion battery-manufacturing plant in Kokomo. The manufacturing facility is expected to have an annual production capacity of 23 gigawatt-hours of batteries for a variety of EVs produced at Stellantis' North American plants. Yates Construction (Philadelphia, Mississippi) and Commercial Contracting Corporation (Detroit, Michigan) are performing general contracting services through a joint venture. Construction is expected to kick off in July, with completion in 2025. Subscribers can click here for a project report.
Stellantis also has established a joint venture with LG Energy Solution to construct a C$5.6 billion (US$4.17 billion) battery-production plant in Windsor, Ontario, capable of supplying Stellantis' plants with 45 gigawatt hours per year of EV batteries. Site preparation kicked off last October, and the completion is planned for March 2024. Click here for a project report.
It hasn't been fully smooth sailing for Stellantis, however, as the company in February shut down its Belvidere Assembly Plant in Illinois, after stopping production of the facility's lone Jeep model. At that time, Carlos Tavares, the company's chief executive officer, said the company is "looking for solutions" for the plant, according to reporting by U.S. News, and attributed the move to the high cost of producing EVs compared with internal combustion engines. Click here for the plant profile.
On Stellantis' full-year 2022 earnings conference call, Chief Financial Officer Richard Palmer provided an automotive industry outlook and company guidance for 2023, saying the company plans to leverage "strong momentum and operating efficiencies gained over the past two years to offset headwinds, which include improving but still disruptive semiconductor availability, supply-chain and logistics constraints, especially in H1 as well as higher energy and labor costs."
While Palmer did not offer a specific amount for 2023 capital expenditures (capex), he said he expects "increased investments in capex and R&D [research and development], plus higher levels of investment in battery JVs [joint ventures] and associated supply chain, offset by improving working capital compared to 2022."
Subscribers to the GMI database can click here for a look at all of the reports discussed in this article, and click here for the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
According to a related press release, the investments will be made at its Tipton Transmission Plant, in the Kokomo metropolitan area, and the Kokomo KTP transmission and casting plants. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Plant Database can click here to see the plant profiles.
The company said EDMs are an "all-in-one solution for electric vehicle powertrains," consisting of three main components--the electric motor, power electronics and transmission--that are then combined into a single module to deliver improved performance and range.
The EDMs will initially be built and cast at the two Kokomo facilities, according to the press release, while gear machining and final assembly will be at the Tipton plant--where the company expects production to begin in the third quarter of 2024.
Industrial Info is tracking three active projects at the Kokomo facilities, where Stellantis currently assembles active and next-generation transmissions, and produces components, for several of the automaker's Jeep, Chrysler and Dodge models.
The company expects to kick off a $90 million upgrade project at the KTP transmission plant later this month, with completion expected at the end of the year. It entails retooling production equipment and supporting systems at the 3.1 million-square-foot facility by performing equipment modifications and upgrades.
At the 625,000-square-foot die-casting facility, a $76.3 million equipment addition kicked off late last year, and completion is expected in early 2024. The addition will allow the plant to produce next-generation EV and hybrid transmissions. Also underway at the facility is a conversion/upgrade project, which entails converting existing die-cast machines and cells for Stellantis' new hybrid-EV engine. Completion is expected in 2025.
Subscribers to the GMI Industrial Manufacturing Project Database can see detailed reports on the KTP transmission, and casting equipment addition and conversion projects.
Stellantis currently operates a total of five plants in Indiana. Click here to see a full list of plant profiles.
In the latest press release, the company said it has invested almost $3.3 billion in Indiana since 2020 to support the company's transition to EVs. This includes more than $2.5 billion in its joint venture with Samsung SDI America Incorporated, a subsidiary of Samsung Group (Seoul, South Korea): a lithium-ion battery-manufacturing plant in Kokomo. The manufacturing facility is expected to have an annual production capacity of 23 gigawatt-hours of batteries for a variety of EVs produced at Stellantis' North American plants. Yates Construction (Philadelphia, Mississippi) and Commercial Contracting Corporation (Detroit, Michigan) are performing general contracting services through a joint venture. Construction is expected to kick off in July, with completion in 2025. Subscribers can click here for a project report.
Stellantis also has established a joint venture with LG Energy Solution to construct a C$5.6 billion (US$4.17 billion) battery-production plant in Windsor, Ontario, capable of supplying Stellantis' plants with 45 gigawatt hours per year of EV batteries. Site preparation kicked off last October, and the completion is planned for March 2024. Click here for a project report.
It hasn't been fully smooth sailing for Stellantis, however, as the company in February shut down its Belvidere Assembly Plant in Illinois, after stopping production of the facility's lone Jeep model. At that time, Carlos Tavares, the company's chief executive officer, said the company is "looking for solutions" for the plant, according to reporting by U.S. News, and attributed the move to the high cost of producing EVs compared with internal combustion engines. Click here for the plant profile.
On Stellantis' full-year 2022 earnings conference call, Chief Financial Officer Richard Palmer provided an automotive industry outlook and company guidance for 2023, saying the company plans to leverage "strong momentum and operating efficiencies gained over the past two years to offset headwinds, which include improving but still disruptive semiconductor availability, supply-chain and logistics constraints, especially in H1 as well as higher energy and labor costs."
While Palmer did not offer a specific amount for 2023 capital expenditures (capex), he said he expects "increased investments in capex and R&D [research and development], plus higher levels of investment in battery JVs [joint ventures] and associated supply chain, offset by improving working capital compared to 2022."
Subscribers to the GMI database can click here for a look at all of the reports discussed in this article, and click here for the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
