UAW: Stellantis has scrapped plans for battery plant, parts hub in Belvidere

BELVIDERE, Ill. (WTVO) — Stellantis has scrapped plans for an EV battery plant and parts distribution hub in Belvidere, according to the United Auto Workers union Vice President Kevin Gotinsky.

On Tuesday, Gotinksy told Automotive News that the battery plant and parts hub were no longer part of Stellantis’ plan for the Belvidere Assembly Plant.

The plant has sat idle since 2023. That fall, Stellantis announced it would invest nearly $5 billion in the factory, including an electric vehicle battery plant and a parts distribution hub.

The project was backed by $334.8 million

in federal funding announced by the Biden administration to help Stellantis convert the Belvidere plant to build electric vehicles. Stellantis said the state had purchased 170 acres of land next to the plant for the factory, which was to be a joint venture with an unannounced business partner. It was expected to launch in 2028.

The company cited “market conditions” for its delay in reopening the plant, as demand for EVs slowed.

In January, UAW President Shawn Fain announced the plant would reopen in 2027, putting 1,500 union members back to work.

In March, United Auto Workers Local 1268 President Matt Frantzen said the Belvidere Assembly Plant would operate in two shifts once it comes back online, with the company looking to recall Skilled Trades workers in the 1st quarter of 2026, Team Leaders in the 4th quarter, and Team Members in the 1st or 2nd quarter of 2027.

In a letter to union members in March, Frantzen said the promised Mopar Mega Hub and battery plant, part of the original union contract, were not included at that stage.

In April, Stellantis said it was still on track to reopen the Belvidere Assembly Plant in 2027, with production of a midsize pickup truck, but it is unknown whether its drive train would be electric or internal combustion.

When asked for a statement on Gotinksy’s comments, a Stellantis spokesperson replied, “Stellantis has no updates to share at this time on the MegaHub or the battery plant.”

Stellantis CEO Carlos Tavares announced his exit in December, with the embattled executive handing the reins to chairman John Elkann while efforts were undertaken to find his replacement.

Antonio Filosa, the company’s chief operating officer for the Americas, has emerged as a top contender for the role.

News of the battery plant cancellation comes as a setback in Illinois’ objectives to become an electric vehicle manufacturing and supply hub.

Gov. JB Pritzker set a goal of having 1 million EVs on Illinois roads by 2030, and introduced a Reimagining Electric Vehicles Act (later renamed the Reimagining Energy and Vehicles Act), which incentivized manufacturers to move to the state.

Lion Electric, which opened a plant in Joliet to build electric school buses, recently filed for bankruptcy.

The state recently pledged $16 million to help EV maker Rivian open a $120 million supplier park near its headquarters in Normal.