The US Department of Energy (DOE) has announced a conditional commitment to provide a loan of up to $7.54bn to StarPlus Energy to develop lithium-ion battery factories in Indiana.
StarPlus Energy is a joint venture (JV) between Stellantis’ subsidiary FCA US and Samsung SDI.
To be granted under the Biden-Harris Administration’s Investing in America agenda, the funding comprises a principal amount of $6.85bn and $688m in capitalised interest.
Once finalised, the loan is intended to support the development of two lithium-ion battery cell and module manufacturing plants in Kokomo. The facilities aim to produce batteries for Stellantis’ electric vehicle (EV) models sold in North America.
Besides, the funding seeks to address domestic demand and enable the US to maintain its position in the rapidly growing EV sector.
The EV battery facilities are projected to generate approximately 3,200 construction jobs at peak and up to 2,800 operational jobs at the plants. Additional hundreds of employment opportunities will be created at a nearby supplier park.
At full capacity, the plants are expected to produce nearly 67GWh of batteries annually, enough to power approximately 670,000 EVs. This output is estimated to displace the use of 260.3 million gallons of petroleum per year, thereby contributing to emissions reductions.
The facilities are being built under the National Maintenance Agreement, a nationwide collective bargaining framework managed by the National Maintenance Agreement Policy Committee.
Aligned with the Biden-Harris Administration’s Justice40 Initiative, the project aims to ensure that 40% of its benefits flow to disadvantaged communities.
The financing, offered through the Advanced Technology Vehicles Manufacturing (ATVM) Loan Program, which is intended to boost domestic manufacturing and reduce reliance on foreign sources.
The DoE stated: “DOE estimates the EVs produced using StarPlus batteries will displace the usage of 260.3 million gallons of petroleum per year—helping to slash harmful pollutants that jeopardise public health and pollute local ecosystems.
“The project will greatly expand EV battery manufacturing capacity in North America and reduce America’s reliance on adversarial foreign nations like China, as well as other foreign sourcing of EV batteries.”
The loan is subject to meeting technical, legal, environmental, and financial conditions before definitive financing documents are finalised.
