Stellantis to invest $155 million in U.S. to produce new electric drive modules

MILAN (Reuters) – Stellantis said on Tuesday it will invest a total of $155 million in three plants located in Kokomo, Indiana, to produce new electric drive modules (EDM) that will be fitted in electric vehicles which the carmaker will assemble in North America.

Production is expected to start in the third quarter of 2024, following retooling, the company said.

“With the investment, more than 265 jobs will be retained across all three plants,” it said.

Stellantis aims to have battery electric vehicles (BEV) account for 50% of its sales in the U.S. by 2030. It has plans for more than 25 BEV launches in the country by then.

The EDMs to be produced in Kokomo will be integrated into vehicles designed on two of the new platforms the group will launch, ‘STLA Large’ and ‘STLA Frame’, Stellantis said in a statement.

Stellantis was created through the $52 billion merger of Fiat Chrysler and Peugeot (OTC:) maker PSA in 2021.