A week after the Biden administration preliminarily approved a $6.6 billion loan to electric vehicle (EV) maker Rivian Automotive, the White House is again giving billions in financial aid to the EV sector. This week, the Department of Energy (DOE) announced a $7.5 billion loan commitment to support the construction of two EV battery manufacturing facilities in Kokomo, Indiana.
“DOE estimates the EVs produced using StarPlus batteries will displace the usage of 260.3 million gallons of petroleum per year –– helping to slash harmful pollutants that jeopardize public health and pollute local ecosystems,” the Energy Department said in a statement. “The project will greatly expand EV battery manufacturing capacity in North America and reduce America’s reliance on adversarial foreign nations like China, as well as other foreign sourcing of EV batteries.”
StarPlus Energy, a joint venture between Stellantis and Samsung, is the company behind the project and the recipient of this funding, which marks the third-largest loan ever approved by the Department of Energy.
The Kokomo facilities are projected to produce enough batteries to power approximately 670,000 electric vehicles annually once both are fully operational.
The first plant is expected to begin production this month, with the second slated to open in 2028. The project is anticipated to create over 6,000 new jobs, including construction and operational roles –– a development praised by the United Auto Workers Union (UAW).
“We are excited to announce that Stellantis has finalized their employee leasing agreement at their joint venture battery plant with Samsung,” the UAW said in a statement. “This means over 1,000 new jobs for UAW members in Kokomo, at a time when Stellantis is trying to cut its way out of its own mismanagement.”
To close this loan, StarPlus Energy must meet various technical, legal, environmental and financial benchmarks. In total, the Department of Energy has now announced 32 deals worth over $54 billion in project investments under the Biden-Harris administration.
