Stellantis has announced $150 million in investments towards facilities in Indiana, with the goal of securing future electric drive module (EDM) production.
Used in most electric vehicles, EDMs combine several important units, such as the transmission, power electronics and engine, into one system, introducing benefits such as improved communication between components and reduced weight. Stellantis will be producing its own version of the technology, which it promises will promises will deliver “improved performance and range at a competitive cost.” More specifically, the automaker believes the new powertrains will allow its EVs to achieve driving ranges up to 500 miles, roughly double the industry’s average.
The $150 million investment will go towards three facilities in Kokomo, Indiana. Once refitted, the plants will handle casting, assembly and machining for the EDMs, and are expected to be fully operational towards the end of next year. Stellantis estimates an additional 265 jobs will be created as a result of the new funds.
In addition to the EDM facilities, Stellantis has an ambitious electrification strategy. Although at present its EV presence is limited, the automaker hopes to bring 25 new models to the U.S., with a global lineup of 75 planned by 2030. While EVs are still a niche product, the sudden increase in consumer attention has led to a slew of new manufacturing initiatives. However, as consumers increasingly struggle with affordability, it remains to be seen how much growth is sustainable before a market correction.