US Commits to $7.54B Loan for Stellantis EV Battery Plants
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Embattled auto manufacturer Stellantis and joint venture partner Samsung SDI have won a commitment from the U.S. government for a loan worth up to $7.54 billion to help build two electric vehicle battery plants in Kokomo, Ind.
The project, being built by StarPlus Energy, is expected to create at least 2,800 jobs at the plants and hundreds more at a nearby park for parts supply companies, the Department of Energy said in a Dec. 2 statement.
The loan still must be finalized, but the government said the commitment shows its intent to finance the project. To get the loan, StarPlus must develop a plan to engage with community and labor leaders to create jobs. It also must meet technical, legal, environmental and financial conditions before the government will fund the loan.
It was initially unclear whether the loan would be finalized before President-elect Donald Trump takes office on Jan. 20. On the campaign trail, Trump pledged to end funding for such projects, which he called the “green new scam.” The Energy Department didn’t directly answer a question about whether the loan would be funded before the inauguration, but said it would be irresponsible for “any government to turn its back on private sector partners, states and communities that are benefiting from lower energy costs and new economic opportunities” from the loans.
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We had the privilege of hosting Stellantis & Samsung SDI executives at StarPlus Energy for a tour of our state-of-the-art production facility in Kokomo. We're making exciting progress as we work together to power the future of sustainable mobility! pic.twitter.com/c2VZMNgsJO — StarPlus Energy LLC (@StarPlusEnergy1) November 21, 2024
The plants would make battery cells and modules for electric vehicles to be sold in North America, the department said. At full capacity, the plants will produce enough batteries to supply about 670,000 vehicles per year.
“This will greatly expand EV battery manufacturing capacity in North America and reduce America’s reliance on adversarial foreign nations like China,” the statement said.
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If the deal is finalized, Stellantis would get $6.85 billion in principal plus $688 million in interest for the project.
In November electric vehicle maker Rivian Automotive got a $6.6 billion loan to build a factory in Georgia, but but that project has stalled as the startup has struggled to make a profit.
The loan announcement arrived one day after Stellantis confirmed that CEO Carlos Tavares was stepping down after nearly four years in the company’s top spot. The world’s fourth-largest automaker, Stellantis owns brands such as Jeep, Ram and Dodge in the U.S., but has been struggling stateside and abroad with slumping sales.
The company said a new interim executive committee, led by Chairman John Elkann, would be established while a CEO search is underway.
