The U.S. Department of Energy (DOE) has announced a conditional commitment to lend up to $7.54 billion to StarPlus Energy LLC, a joint venture between FCA US LLC, a subsidiary of Stellantis N.V. (NYSE:STLA), and Samsung SDI (KS:006400) Co. Ltd. This loan is set to support the construction of two lithium-ion battery cell and module manufacturing facilities in Kokomo, Indiana, with the intention of advancing the United States' position in the electric vehicle (EV) market.
The proposed financial package consists of $6.85 billion in principal and $688 million in capitalized interest. The plants, once operational, aim to generate approximately 67 gigawatt-hours (GWh) of batteries annually, which is expected to supply power to about 670,000 EVs each year. The batteries produced at these facilities will be used by Stellantis for its North American EV models.
The DOE's support is part of the broader Investing in America agenda led by the Biden-Harris Administration, which promotes domestic manufacturing and job creation. The StarPlus project is anticipated to create up to 3,200 jobs during peak construction and 2,800 operational jobs at the plants. In addition, the initiative will contribute to the creation of hundreds of jobs at a nearby supplier park, bolstering the regional economy.
The DOE estimates that EVs powered by StarPlus batteries could displace 260.3 million gallons of petroleum annually, reducing pollutants and dependence on foreign battery sourcing, particularly from countries like China. This aligns with the Administration's goal to increase EV battery manufacturing capacity in North America.
The Loan Programs Office (LPO) mandates that borrowers like StarPlus develop a Community Benefits Plan (CBP), which ensures engagement with community and labor stakeholders to create quality jobs and enhance local well-being. The construction of the new facilities will be governed by the National Maintenance Agreement (NMA), ensuring workforce continuity and minimizing project delays.
The initiative also aligns with the Justice40 Initiative, aiming for 40% of the benefits from certain federal investments to reach disadvantaged communities affected by pollution and underinvestment. StarPlus is collaborating with local educational institutions, including Ivy Tech Kokomo and Purdue Polytech, to provide necessary training and is developing Department of Labor-approved apprenticeships to support workforce development.
The loan, which would be provided through the Advanced Technology Vehicles Manufacturing (ATVM) Loan Program, is part of the Administration's efforts to bring back domestic manufacturing technologies. However, before the DOE can finalize the loan, both the DOE and StarPlus Energy must meet specific technical, legal, environmental, and financial conditions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Comments (0)