Key Points
- The DOE plans to loan $7.54 billion to StarPlus Energy, a Stellantis and Samsung SDI joint venture, for two EV battery plants in Indiana.
- The plants will produce 67 GWh of lithium-ion batteries annually, powering approximately 670,000 vehicles.
- Stellantis aims to open the first plant in 2025 and the second in 2027, complementing a gigafactory in Canada with LG Energy Solution.
- DOE’s ATVM loan program funds various EV initiatives, including a proposed $6.6 billion loan to Rivian for a Georgia plant.
The U.S. Department of Energy (DOE) announced plans to loan up to $7.54 billion to StarPlus Energy, a joint venture between Stellantis and Samsung SDI, to develop two state-of-the-art lithium-ion battery plants in Kokomo, Indiana. This conditional commitment comprises $6.85 billion in principal and $688 million in capitalized interest and is part of the DOE’s broader push to bolster electric vehicle (EV) infrastructure in the United States.
The Indiana plants will supply batteries for Stellantis EVs, with a combined annual production capacity of approximately 67 GWh. This output would be sufficient to power around 670,000 vehicles yearly. Stellantis has confirmed that the first facility will open in early 2025, followed by the second plant in 2027.
This initiative aligns with Stellantis’ global EV strategy, including collaborating with South Korea’s LG Energy Solution to build a gigafactory in Canada. DOE has also previously pledged $334.8 million to transform Stellantis’ Belvidere Assembly Plant into an EV manufacturing hub and $250 million to convert its Indiana Transmission Plant for EV component production. These awards are still pending finalization.
The loan for StarPlus Energy taps into the Advanced Technology Vehicles Manufacturing (ATVM) loan program for advancing EV production in the U.S. Last week, DOE proposed lending $6.6 billion to EV manufacturer Rivian to build a new facility in Georgia, targeting the production of smaller, cost-effective EVs by 2028.
Over the past year, the DOE has significantly expanded its investments in EV manufacturing. In December 2022, it finalized a $2.5 billion loan to a General Motors and LG Energy Solution joint venture to fund battery plants in Ohio, Tennessee, and Michigan. Additionally, in June 2023, the DOE announced plans for a record $9.2 billion loan to Ford Motor Company and South Korea’s SK On to develop three battery plants in Tennessee and Kentucky, though this award remains under review.
These strategic loans underscore the U.S. government’s commitment to accelerating EV adoption, reducing carbon emissions, and establishing domestic leadership in the EV industry amidst global competition.
