The U.S. Department of Energy (DOE) announced a conditional $7.54 billion loan to StarPlus Energy, a joint venture between Stellantis, the parent company of Chrysler, and Samsung SDI, to support the construction of two lithium-ion battery plants in Kokomo, IN, in a step toward meeting EV demand and advancing clean energy goals.
The loan commitment, which includes $6.85 billion in principal and $688 million in capitalized interest, is part of the government’s Advanced Technology Vehicles Manufacturing loan program. At full capacity, the Indiana facilities are projected to produce 67 gigawatt-hours (GWh) of batteries annually -- enough to power approximately 670,000 EVs per year.
Stellantis said the first plant is set to begin operations in early 2025, with the second following in 2027.
The Kokomo plants are just one component of Stellantis' larger EV strategy, which includes additional projects like a Canadian gigafactory in partnership with LG Energy Solution. Earlier this year, the DOE also announced plans to lend Stellantis $334.8 million to retrofit its Belvidere Assembly Plant in Illinois and $250 million to convert the Indiana Transmission Plant for EV component production.
This is not the only major investment by the DOE in EV infrastructure. In 2023, the department committed $9.2 billion to Ford and SK On for three battery plants in Tennessee and Kentucky. More recently, it announced $6.6 billion for Rivian to build a plant in Georgia that will produce smaller, more affordable EVs.
The Advanced Technology Vehicles Manufacturing loan program has been instrumental in catalyzing private investment in the EV sector, providing low-cost financing to help automakers transition to electrification.
However, the timeline for finalizing this loan remains uncertain, particularly with the upcoming administration transition.
