- The Department of Energy has given the initial sign off on a $7.54 billion loan to a battery joint venture between FCA US and Samsung SDI.
- The funds would be used to establish two plants in Kokomo, Indiana which could build enough batteries to power up to 670,000 vehicles annually.
- The plants are expected to create thousands of jobs, but it remains to be seen if the loan will come to fruition.
Days after giving Rivian a conditional loan commitment of up to $6.57 (£5.24 / €6.27) billion for a new plant in Georgia, the U.S. Department of Energy’s Loan Programs Office is doing it once again. This time they’re announcing a conditional commitment of up to $7.54 billion to StarPlus Energy.
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While the name might not ring a bell, StarPlus Energy is a joint venture between FCA US and Samsung SDI. If the loan is finalized, the money will be used to establish two lithium-ion battery cell and module manufacturing plants in Kokomo, Indiana. The resulting batteries would then be used in Stellantis electric vehicles sold in North America.
More: Stellantis And Samsung Announce Second U.S. Gigafactory
If everything goes according to plan, the project could create around 3,200 construction jobs and up to 2,800 operations jobs at the plants. Hundreds of additional jobs are also expected to be created at a nearby supplier park.
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When running at full capacity, the StarPlus Energy plants will be able to produce around 67 GWh of battery capacity annually. That’s enough to power approximately 670,000 vehicles.
The Department of Energy said 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 government added vehicles using batteries produced at the plant should help to reduce the use of 260.3 million gallons (985.3 million liters) of petroleum every year.
One of the plants is slated to open in 2025, while the other could come online in 2027. However, the loan isn’t a done deal as the government noted StarPlus Energy “must satisfy certain technical, legal, environmental, and financial conditions” before everything is finalized. President Trump is also slated to return to the White House in less than two months and it’s possible his administration may try to scuttle the loan.
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