U.S. Proposes $7.54B Loan for Stellantis Battery Venture

The U.S. Department of Energy (DOE) has announced plans to offer a conditional loan of up to $7.54 billion to support StarPlus Energy, a joint venture between Stellantis and Samsung SDI. This funding is intended to assist the construction of two state-of-the-art lithium-ion battery plants in Kokomo, Indiana, to power the next generation of electric vehicles (EVs).

The loan includes $6.85 billion in principal and an additional $688 million in capitalized interest. If finalized, this investment will come from the Advanced Technology Vehicles Manufacturing (ATVM) loan program, which aims to strengthen the EV sector in the U.S.

Boosting Battery Production – 

At full capacity, the new Kokomo facilities are expected to produce 67 GWh of batteries annually, enough to power approximately 670,000 vehicles. Stellantis plans to open the first battery plant in early 2025 and the second in 2027.

In addition to the Indiana plants, Stellantis is also partnering with LG Energy Solution to construct a gigafactory in Windsor, Ontario, Canada, showcasing its commitment to expanding EV production capacity across North America.

Government Support for EVs – 

The DOE has made significant efforts to back EV production through similar initiatives. Recently, the department proposed a $6.6 billion loan to Rivian for a Georgia manufacturing facility and announced its largest-ever loan—$9.2 billion—to Ford and SK On for battery plants in Tennessee and Kentucky.

Other automakers, including General Motors (GM), have also benefited from government funding. In 2022, GM secured a $2.5 billion loan for battery cell manufacturing in Ohio, Tennessee, and Michigan.

Challenges Ahead – 

While the proposed loan signals strong support for EV infrastructure, it remains uncertain if it will be finalized before a potential shift in U.S. political leadership. Critics of the Biden administration’s EV-focused policies, including President-Elect Donald Trump, have questioned the heavy reliance on government subsidies for the industry.

Video Source: WTOL 11