Why Stellantis Stock Gained Today - Stellantis (NYSE:STLA)

Stellantis NV (NYSE:STLA) shares traded higher on Wednesday amid volatility in auto stocks due to the UAW strikes. Additionally, the company and Samsung SDI disclosed Kokomo, Indiana, as the second site for the electric vehicle battery manufacturing facility in the U.S.

What To Know: The ongoing strikes have impacted the auto sector for the past several weeks as the UAW challenges major automakers. Recently, the UAW made headway when General Motors permitted its workers at joint-venture battery plants to be covered by union contracts.

Also on Wednesday, the company announced Kokomo, Indiana as the site for a second battery manufacturing facility in the U.S., anticipated to begin production in early 2027 and boasting an annual capacity of 34 gigawatt hours.

The facility is part of the StarPlus Energy joint venture with Samgsung SDI, investing over $3.2 billion (€2.8 billion) and creating 1,400 new jobs in Kokomo and the surrounding areas. The total investment for both facilities will be over $6.3 billion (€5.5 billion) and create 2,800 total new jobs.

"Our battery ecosystem is the foundation of our electrification strategy and our great partners Samsung SDI, the State of Indiana, and the City of Kokomo have created a compelling case for locating our sixth gigafactory in Kokomo," said Mark Stewart, Stellantis COO North America. "The BEVs coming to our North America brands play an important role in our drive to offer clean, safe and affordable mobility for all and achieve the bold goal of carbon net zero by 2038."

STLA Price Action: Shares of STLA were flat at $20.25 in the after-hours session at the time of publication, according to Benzinga Pro.

Photo: John Howard from Pixabay

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