The US Energy Department has recently announced a proposed loan of up to $7.54bn to the StarPlus Energy joint venture (JV) between Stellantis and Samsung SDI. This financial support is intended to facilitate the construction of two electric vehicle lithium-ion battery plants in Kokomo, Indiana.
The conditional commitment includes $6.85bn in principal and $688m in capitalised interest. The JV plans to build batteries for Stellantis electric vehicles, with a production target of around 67GWh annually. This output is projected to supply batteries for approximately 670,000 vehicles each year.
Stellantis has disclosed that the first Indiana plant is scheduled to open in early 2025, with the second plant following in 2027. However, there is some uncertainty regarding whether the loan will be finalised before the change in US presidency on 20 January.
President-elect Donald Trump has criticized the current administration’s efforts to promote electric vehicle production. Additionally, Stellantis is set to establish a gigafactory in Canada in partnership with LG Energy Solution.
The Department of Energy (DOE) has also revealed plans to allocate $334.8m for the transformation of the shuttered Belvidere Assembly Plant for EV production, and $250m for the conversion of the Indiana Transmission Plant in Kokomo to manufacture EV components. These awards, announced in July, are yet to be finalized.
The DOE is utilizing the advanced technology vehicles manufacturing loan program to stimulate growth in the EV sector. Last week, the department proposed a loan of up to $6.6bn to Rivian for a new plant in Georgia, targeting production of more affordable EVs by 2028.
In June 2023, the DOE announced plans to lend up to $9.2bn to a JV of Ford Motor and SK On for three battery plants, marking the largest-ever award from the government loan program, although this award is also pending finalization. The support from the US Energy Department reflects a significant commitment to advancing the electric vehicle industry and promoting sustainable transportation solutions.
