Dive Brief:
- Starplus Energy, a joint venture between Stellantis and Samsung SDI, finalized its $7.54 billion loan from the Department of Energy to build two lithium-ion battery plants in Kokomo, Indiana, the agency announced Tuesday.
- The project, under the DOE’s Advanced Technology Vehicles Manufacturing Loan Program, will create approximately 3,200 construction jobs and up to 2,800 operations jobs at the plants.
- At full scale, the plants will produce 67 gigawatt hours of batteries annually, enough to power 670,000 electric vehicles, as the industry continues its push to lessen reliance on China for battery supplies.
Dive Insight:
StarPlus Energy initially announced plans for the first $2.5 billion battery gigafactory in May 2022, set to start production next year, and the second $3.2 billion factory in July 2023, set to commence operations in 2027. The company plans to build three total battery plants in Kokomo.
The joint venture is building a network of battery factories across North America and Europe to secure approximately 400 GWh of battery capacity, essential for meeting EV production goals under its "Dare Forward 2030" strategy. The plan aims to electrify 50% of its U.S. vehicle lineup and 100% of its European lineup by 2030.
For the two factories, the company will partner with local institutions for job training and is developing Labor Department-approved electro-mechanical apprenticeships.
The StarPlus Energy project will also participate in the Biden administration’s Justice40 Initiative to bring more clean energy investment to disadvantaged communities.
The Biden-Harris administration is racing to finalize clean energy loans before President-elect Donald Trump takes office in January as clean energy advocates worry he could roll back the Inflation Reduction Act.
Also through the DOE’s Advanced Technology Vehicles Manufacturing Loan Program, Rivian received $6.6 billion on Nov. 24 for its $5 billion Georgia EV plant. Ford Motor Co.’s joint venture battery plant secured a $9.63 billion loan on Dec. 16 to finance up to three plants in Tennessee and Kentucky.
Lastly, Eos Energy Enterprises closed on a $303.5 million DOE loan in November to expand capacity at a battery energy storage system manufacturing plant in Pennsylvania.
