A Stellantis joint venture with Samsung SDI has secured a commitment from the US government for up to $7.54 billion in loans to help build two battery factories for electric vehicles in Kokomo, Indiana.
The project being built by StarPlus Energy LLC is expected to create at least 2,800 jobs at the plants and hundreds of additional jobs at a nearby park for parts suppliers, the Energy Department said in a statement Monday.
The loan has yet to be finalized, but the government says the commitment shows its intention to finance the project. To get the loan, StarPlus must develop a plan to work with community and labor leaders to create good-paying jobs. It must also meet technical, legal, environmental and financial conditions before the government will finance the loan.
It is unclear whether the loan will be completed before President-elect Donald Trump takes office on January 20. During his campaign, Trump promised to stop funding such projects, which he called the “green new scam.” A message seeking comment from the Trump transition team was left Monday.
The Energy Department did not directly answer whether the loan would be funded before the inauguration, but said it would be irresponsible for “any administration to turn its back on the private sector partners, states and communities that benefit from lower energy revenues.” ” costs and new economic opportunities” from the loans.
The factories would make battery cells and modules for electric vehicles that would be sold in North America, the department said. At full capacity, the plants will produce enough batteries to power approximately 670,000 vehicles per year.
“This will significantly increase EV battery production capacity in North America and reduce America’s dependence on hostile foreign countries such as China,” the statement said.
If the project is completed, Stellantis would in principle receive $6.85 billion, plus $688 million in interest for the project.
Late last month, electric vehicle maker Rivian Automotive received a $6.6 billion loan to build a factory in Georgia that has stalled as the startup struggled to turn a profit.
The loan announcement comes a day after Stellantis confirmed CEO Carlos Tavares stepping down after almost four years in the top spot from the car manufacturer that owns brands such as Jeep, Ram and Citroën and Peugeot. The world’s fourth-largest automaker announced that its board accepted Tavares’ resignation with immediate effect on Sunday, amid a ongoing battle against declining sales.
The company says a new interim executive committee will be established, led by Chairman John Elkann, while a search for a CEO is conducted.
