The U.S. Department of Energy agreed conditionally to finance the StarPlus Energy LLC project with a $7.54-billion loan for construction of its two lithium-ion battery cell and module manufacturing plants in Kokomo, Ind. DoE emphasized that the project reinforces the Biden administration’s 'Investing in America' agenda, and like the loan offered recently to Rivian Automotive it would be sourced through the Advanced Technology Vehicles Manufacturing (ATVM) Loan Program.
StarPlus Energy LLC is a joint venture of automaker Stellantis and electric vehicle battery materials maker Samsung SDI that plans to build two lithium-ion battery cell and module manufacturing plants in Kokomo, Ind.
The loan – $6.85 billion in principal, $688 million in capitalized interest – is not yet finalized, and the announcement by DoE’s Loan Program Office does not address the possibility that the incoming Trump administration may revoke the commitment.
Stellantis has not commented on the loan commitment.
Stellantis and Samsung SDI revealed their joint venture in 2022 and doubled its scope in 2023, projecting a total annual capacity for 67 GWh of batteries. The first plant is under construction, to start manufacturing in 2025. The second would start production in 2027.
The EV batteries produced by StarPlus Energy will be sold to Stellantis for its electric vehicle models, DoE noted.
Stellantis has pledged that all of its passenger cars offered in Europe will be battery-electric vehicles by 2030, as will 50% of passenger cars and light-duty trucks for sale in the United States by that date.
Similar to the recent Rivian Automotive loan, the grant requires the borrower to develop and implement a comprehensive Community Benefits Plan that will ensure StarPlus Energy “meaningfully engage(s) with community and labor stakeholders to create good-paying jobs and improve the well-being of the local community and workers.
DoE estimated that the new plants would create approximately 3,200 construction jobs and up to 2,800 operations jobs, plus “hundreds of additional jobs at a nearby supplier park.”
