KOKOMO, IND. — StarPlus Energy LLC, a joint venture between global automobile manufacturer Stellantis N.V. and South Korean battery maker Samsung SDI Co. Ltd., has secured a conditional commitment for federal funding to finance two new lithium-ion battery cell and module manufacturing plants underway in Kokomo. The plants were announced by the manufacturers in 2022 and 2023.
As part of the Biden-Harris Administration’s “Investing in America” agenda, the U.S. Department of Energy’s (DOE) Loan Programs Office (LPO) announced a conditional commitment for a loan of up to $7.5 billion ($6.8 billion in principal and $688 million in capitalized interest) to StarPlus Energy. The company must satisfy certain technical, legal, environmental and financial conditions before the DOE funds the loan.
If finalized, the loan would be offered through LPO’s Advanced Technology Vehicles Manufacturing (ATVM) program, which provides loans to support U.S. manufacturing of advanced technology vehicles, qualifying components and materials that improve fuel economy.
The output from the Kokomo facilities will be sold to Stellantis for use in electric vehicle (EV) models that will be sold in North America. One goal of the federal funding is to help “ensure the United States can meet domestic demand and remain a global leader in the rapidly expanding EV industry,” according to a press release from the LPO.
At full capacity, the StarPlus project will produce about 67 gigawatt hours (GWh) of batteries, which is enough to supply approximately 670,000 vehicles annually. DOE estimates the EVs produced using StarPlus batteries will displace the usage of 260.3 million gallons of petroleum per year.
Like all LPO borrowers, StarPlus Energy is required to develop and implement a comprehensive Community Benefits Plan (CBP), which ensures that borrowers “meaningfully engage with community and labor stakeholders to create good-paying jobs and improve the well-being of the local community and workers,” according to the LPO announcement.
The project is expected to create approximately 3,200 peak construction jobs, up to 2,800 operations jobs at the plants and hundreds of additional jobs at a nearby supplier park. The first steel beam was laid at the first manufacturing plant in March 2023, according to the Kokomo Tribune.
StarPlus Energy is also partnering with local educational institutions, such as Ivy Tech Kokomo and Purdue Polytech, for training purposes. The firm is also developing electro-mechanical apprenticeships approved by the U.S. Department of Labor.
Stellantis is based in Amsterdam and produced nearly 6.2 million vehicles in 2023 alone. The company is a 2021 merger between Fiat Chrysler Automobiles and the French PSA Group. Stellantis brands include Abarth, Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, Maserati and Ram Trucks.
Samsung SDI is the battery and electronics materials manufacturing arm of Samsung. In addition to the Kokomo plants, Samsung SDI is developing a $3.5 billion EV battery plant in New Carlisle, Ind., in a joint venture with General Motors. The company also operates battery plants in Auburn Hills, Mich.
— John Nelson