- Published 2026.11.10 12:07
Indiana Economic Development Corp. requests $53.75 million from state budget committee
StarPlus Energy accelerates first plant ramp-up, strengthens North American push
The state of Indiana is moving to provide $53.75 million (about 75 billion won) in cash performance-based incentives to the Kokomo battery plant of StarPlus Energy, the joint venture between Samsung SDI and Stellantis. The continued state-level support is expected to bolster Samsung SDI's efforts to build a North American battery production base.
According to the Indiana Economic Development Corp. (IEDC) on Nov. 10, the agency has requested approval from the state budget committee to reallocate $53.75 million for the Kokomo electric vehicle battery project. The move is part of the process to disburse cash performance-based incentives to the StarPlus Energy plant being built in Kokomo by Samsung SDI and Stellantis.
Indiana has been offering aggressive benefits to shift its auto industry from internal combustion engines to advanced batteries. The state previously provided $125 million (about 175 billion won) in cash performance-based incentives to StarPlus Energy when construction of the first plant began in 2022, along with $37.5 million (about 52.5 billion won) in tax credits through the Economic Development for a Growing Economy (EDGE) program.
StarPlus Energy is a joint venture in which Samsung SDI holds a 51% stake and Stellantis owns 49%. The first plant, with an annual capacity of 33 gigawatt-hours (GWh), began full operations this year. Kokomo sits in the heart of the U.S. Midwest auto belt, close to Stellantis' existing plants as well as major vehicle assembly facilities in Michigan, Ohio and Illinois. Given the high transportation costs for batteries, the location is a key competitive advantage in reducing logistics expenses.
Samsung SDI is also accelerating efforts to secure investment resources and reorganize its business around local production. The company recently sold part of its stake in Samsung Display to raise 4.45 trillion won (about $3.3 billion) in cash, which it plans to use for U.S. battery plant investments and future growth areas such as energy storage systems (ESS). The Kokomo first plant is diversifying its product lineup by producing ESS batteries based on nickel-cobalt-aluminum (NCA) chemistry alongside EV batteries.
For another battery joint venture originally planned with General Motors in New Carlisle, Indiana, Samsung SDI changed the business structure to operate the plant independently amid shifting U.S. EV demand. As the company now needs to run both a standalone business and a joint venture in the region, securing additional incentives for the Kokomo plant will help reduce manufacturing costs and maintain cost competitiveness.
(Dollar figures are approximate, converted automatically at 1,000 won = $0.735, the rate on Nov. 10, 2026.)
※ This article is an AI translation of the Korean original published by Korea Credit News; it was checked by automated quality guards and published by the English edition desk.
