In a move to bolster the electric vehicle (EV) industry in the United States, the Department of Energy has conditionally agreed to loan up to $7.54 billion to StarPlus Energy. This influx of federal funds is slated to erect two lithium-ion battery cell and module manufacturing plants in Kokomo, Indiana, a project that is poised to significantly enhance EV battery manufacturing capacities in North America and reduce the nation's reliance on foreign sources, particularly adversarial ones like China.
If the loan reaches finalization, it is set to not only advance Stellantis' efforts in producing EVs for North America but also to generate approximately 3,200 peak construction jobs. The two plants are expected to contribute up to 2,800 operational positions, with hundreds more arising in a neighboring supplier park, according to a news release obtained by FOX59. The StarPlus Energy project, a joint venture between Stellantis and Samsung SDI, "would expand the battery manufacturing capacity in North America," as the Department of Energy indicated in their statement.
The conditional commitment from the Department's Loan Programs Office is considered the third-largest to date, following a monumental $9.2 billion pledged to an EV battery initiative in Kentucky and Tennessee. This StarPlus Energy project will ultimately possess the capacity to churn out batteries sufficient for approximately 670,000 vehicles annually once fully operational, as reported by IndyStar.
This financial commitment arrives amidst political uncertainties, as President-elect Donald Trump has previously expressed intentions to cease funding such initiatives, branding them the "green new scam." However, it remains unclear whether the loan will be finalized before Trump's inauguration. Still, as the Department stated, 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 these loans. This sentiment echoes a broader commitment to the country's energy independence and labor market, as the joint venture aims to provide an infusion of well-paying jobs alongside advancing technical education, in collaboration with local institutions such as Ivy Tech Kokomo and Purdue PolyTech, to ensure the workforce is suitably trained for the job demands these plants will introduce, as reported by WTHR.
Recent developments have seen the loan announcement coincide with the resignation of Stellantis CEO Carlos Tavares, stepping down after close to four years at the helm, amid slumping sales for the automaker. As WTHR reports, Tavares' departure was confirmed a day prior to the loan announcement, suggesting a transitional period for the company as it engages in a pivotal project shaping the future of automotive energy in the United States.
