StarPlus Energy, the battery cell joint venture between Stellantis and Samsung SDI, has secured a conditional commitment from the U.S. Department of Energy for a loan of up to $7.54 billion. This funding is intended to support the construction of two battery cell and module factories in Kokomo, which will supply batteries for Stellantis’ electric vehicles.
The Department of Energy will provide the loan once StarPlus Energy meets specific technical, legal, environmental, and financial requirements. The commitment comprises up to $6.85 billion in principal and $688 million in capitalized interest.
The two planned facilities aim for a combined production capacity of 67 GWh per year. The first plant, already under construction since March 2023, is expected to commence operations in the first quarter of 2025 with an annual capacity of 33 GWh. The second plant is slated to begin production in 2027, adding 34 GWh of capacity. The total investment for both factories exceeds $6.3 billion and is projected to create approximately 2,800 new jobs.
In May 2023, Stellantis and Samsung SDI announced plans for one or two additional battery factories in the United States, citing favorable investment conditions stemming from the U.S. Inflation Reduction Act. The StarPlus Energy joint venture was established by the companies in 2021.
Beyond the Indiana projects, Stellantis is also collaborating with LG Energy Solution to build a 45 GWh battery factory in Ontario, Canada. While the automaker previously aimed to achieve 400 GWh of global battery cell production capacity by 2030, it is currently unclear if this target will be met, as the company has slowed developments with its European joint venture, Automotive Cells Company (ACC).
Source: Electrive
