The U.S. Department of Energy (DOE) announced on Monday a proposal to provide up to USD 7.54 billion in financing to StarPlus Energy, a joint venture between Stellantis and Samsung SDI, to support the construction of two lithium-ion battery plants in Indiana.
The conditional loan commitment, which remains subject to finalisation, includes USD 6.85 billion in principal and USD 688 million in capitalised interest. The facilities in Kokomo, Indiana, will supply Stellantis’ electric vehicles and are expected to reach a combined production capacity of 67 GWh, sufficient to power around 670,000 EVs annually.
Stellantis confirmed that the first plant is slated to open in early 2025, with the second facility following in 2027. The joint venture represents a key component of Stellantis’ electrification strategy, which also includes plans to construct a gigafactory in Canada with LG Energy Solution.
The DOE’s Advanced Technology Vehicles Manufacturing (ATVM) loan program, designed to bolster the EV sector, is providing the funds. However, it remains uncertain whether the deal can be finalised before President-elect Donald Trump assumes office on January 20. Trump has voiced opposition to the Biden administration’s EV incentives, which could potentially impact the program’s future.
The Kokomo plants are part of a broader DOE push to expand U.S. EV production. In July, the DOE announced plans to award Stellantis USD 334.8 million to convert its idle Belvidere Assembly Plant into an EV manufacturing facility and USD 250 million to upgrade its Indiana Transmission Plant for EV component production, though those awards are still pending finalisation.
The ATVM program has supported similar ventures, including a USD 6.6 billion loan proposal last week for Rivian to establish a Georgia plant and a finalised USD 2.5 billion loan in December 2022 to a General Motors-LG Energy Solution joint venture. Earlier this year, the DOE proposed a USD 9.2 billion loan for a Ford-SK On partnership to build three battery plants in Tennessee and Kentucky.
These initiatives underscore the U.S. government’s commitment to advancing EV manufacturing, even as questions linger about future federal support under the incoming administration.