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The U.S. Department of Energy (DOE) announced Monday its intention to provide a $7.54 billion loan to support the development of two lithium-ion battery manufacturing facilities in Kokomo, Indiana. The plants are part of a joint venture between Stellantis NV and Samsung SDI, operating under the name StarPlus Energy LLC. The DOE’s loan underscores the federal government’s commitment to boosting domestic electric vehicle (EV) production and reducing reliance on foreign supply chains.

A Major Push for EV Battery Manufacturing

The StarPlus Energy facilities will produce batteries and modules for Stellantis' North American EV lineup, with the capacity to power approximately 670,000 vehicles annually. The DOE emphasized the environmental benefits, projecting that the facilities’ production could eliminate the need for about 260 million gallons of oil annually while strengthening the domestic supply chain for critical EV components.

“The project will greatly expand EV battery manufacturing capacity in North America and reduce America's reliance on adversarial foreign nations like China,” the DOE stated in a press release.

Job Creation and Workforce Development

The Kokomo battery plants are expected to create approximately 3,200 construction jobs and 2,800 operational jobs, along with hundreds more at a neighboring industrial park. StarPlus Energy is partnering with local colleges and developing apprenticeship programs to prepare a skilled workforce for the burgeoning EV sector.

The first facility, announced in May 2022, is set to begin production this month, while the second facility, revealed in 2023, is scheduled to commence operations in 2028.

Federal Investment in EV Infrastructure

The DOE’s loan to StarPlus Energy follows its recent $6.5 billion loan commitment to Rivian New Horizon LLC for the construction of a massive EV manufacturing facility in Georgia. Both loans reflect the federal government’s dedication to accelerating the transition to clean energy and reinforcing the U.S. EV supply chain.

Stellantis’ Vision Amid Leadership Changes

The announcement came shortly after Stellantis CEO Carlos Tavares resigned, amid reports of declining vehicle sales. Stellantis, known for brands such as Jeep, Dodge, Chrysler, and Peugeot, has pledged to electrify its fleet in the coming years, with the Kokomo plants playing a pivotal role in achieving this goal.

A Stellantis spokesperson highlighted the importance of the Kokomo operations, stating:
"The StarPlus operation in Kokomo, Indiana, will play an important role in our drive to offer clean, safe, and affordable mobility options to our customers, with batteries made in the U.S. by American workers."