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.
