DOE backs $7.54bn loan for Stellantis-Samsung SDI’s EV battery plants in Indiana

The U.S. Department of Energy (DOE) has conditionally committed to a monumental loan of $7.54 billion to StarPlus Energy, a joint venture between Stellantis N.V. and Samsung SDI. This initiative is set to significantly expand domestic EV production, addressing growing demand and bolstering America’s energy independence.

StarPlus Energy’s project will establish two state-of-the-art lithium-ion batteries production plants in Kokomo, Indiana. Once operational, these Kokomo, Indiana facilities are expected to generate an annual capacity of 67 gigawatt-hours of batteries, powering approximately 670,000 EVs per year. This development is a critical step in the clean energy transition, aligning with the Biden-Harris Administration’s goals to onshore manufacturing and reduce reliance on foreign suppliers.

Transforming EV production with sustainable innovation

The StarPlus Energy plants represent a significant leap in North America’s EV battery manufacturing capabilities. DOE estimates suggest that vehicles powered by these lithium-ion batteries will collectively displace 260.3 million gallons of petroleum annually, reducing carbon emissions and advancing environmental sustainability.

The joint venture combines Stellantis’ extensive automotive expertise with Samsung SDI’s leading battery technology. These Kokomo, Indiana facilities will exclusively supply Stellantis’ North American EV lineup, supporting the automaker’s ambition to achieve 100% EV sales in Europe and 50% in the U.S. by 2030.

StarPlus Energy has announced an investment of over $6.3 billion for the project, which is expected to bolster the regional economy significantly. The StarPlus Energy plants are set to create 3,200 peak construction jobs and 2,800 permanent positions once operational. Additionally, hundreds of jobs will emerge at a dedicated supplier park nearby, further enhancing economic growth in Indiana.

Local engagement and community benefits

As part of its commitment to community development, StarPlus Energy is working closely with educational institutions such as Ivy Tech Kokomo and Purdue Polytechnic to prepare the workforce for specialised roles in EV battery manufacturing. The company is also implementing a Community Benefits Plan in line with the Biden-Harris Administration’s Justice40 Initiative, ensuring that disadvantaged communities benefit from this transformative investment.

The plants will operate under the National Maintenance Agreement, ensuring labor stability through collective bargaining agreements with local trade unions. This approach helps mitigate project delays while fostering workforce continuity.

Advancing U.S. energy independence

The DOE’s support comes through the Advanced Technology Vehicles Manufacturing Loan Program, which is designed to accelerate the production of clean energy technologies. This conditional loan commitment underscores the federal government’s intent to reinforce domestic EV production and reduce dependence on foreign battery production, particularly from countries like China.

While the loan’s finalization remains subject to meeting technical, legal, and financial conditions, its approval would mark a significant milestone in U.S. efforts to lead the global EV revolution. The first Kokomo plant is expected to begin operations by early 2025, with the second set to follow in 2027.

Driving the future of clean energy

This ambitious project signals a shift towards sustainable manufacturing practices and a robust domestic EV ecosystem. By combining cutting-edge technology, environmental stewardship, and economic empowerment, the StarPlus Energy plants position the U.S. as a leader in the clean energy transition and the growing global market for lithium-ion batteries.