A joint venture between Stellantis (STLA.MI) and Samsung SDI, StarPlus Energy LLC, has received a conditional commitment for up to $7.54 billion in loans from the U.S. Department of Energy to develop two electric vehicle (EV) battery plants in Kokomo, Indiana.
The loan commitment, announced as part of the Biden administration’s efforts to bolster domestic EV production, aims to support the production of lithium-ion batteries for the North American market. The project, expected to create 2,800 direct jobs and several hundred additional positions in nearby supplier facilities, marks a significant investment in the U.S. EV supply chain.
While the loan represents a critical step forward for the joint venture formed in October 2021, its finalization depends on StarPlus Energy meeting several requirements. These include engaging with the local community, consulting labor leaders to establish good-paying jobs, and satisfying technical, legal, environmental, and financial conditions.
The Department of Energy emphasized the broader economic benefits of such projects. “Turning our back on private sector partners, states, and communities benefiting from these loans would be irresponsible,” the agency stated.
President-elect Donald Trump, set to take office in January 2025, has pledged to discontinue funding for such programs. The Energy Department has not clarified whether the loan will be finalized before his inauguration, leaving the project’s future uncertain under the new administration.
The two Kokomo plants are part of Stellantis and Samsung SDI’s efforts to expand EV battery production capacity in the United States. During the InterBattery 2022 conference, Samsung SDI’s CEO hinted at the company’s plans to increase U.S. production capabilities.
