The U.S. Department of Energy building in Washington, DC, on July 22, 2019.
Alastair Pike | AFP | Getty Images
The U.S. Department of Energy said on Monday it plans to loan up to $7.54 billion to a joint venture of Chrysler parent company star and Samsung SDI Help build two electric vehicle lithium-ion battery plants in Indiana.
The conditional commitment award, which still needs to be finalized, includes $6.85 billion in principal and $688 million in capital interest for the StarPlus Energy joint venture.
The joint venture will produce batteries in Kokomo, Indiana, star The Department of Energy says electric vehicles will produce about 67 GWh of batteries when operating at full capacity, enough to supply about 670,000 vehicles per year.
It’s unclear whether the department will be able to finalize low-cost government-subsidized loans before the president-elect Donald Trump Taking office on January 20th. He has always been critical of Biden Government efforts to incentivize electric vehicle production.
The first factory will open in early 2025 and the second in 2027, Stellantis said on Monday. In addition to the two plants announced in Indiana, Stellantis will build a gigafactory in Canada in partnership with South Korea’s LG Energy Solution.
The U.S. Department of Energy said in July it planned to award Stellantis $334.8 million to retrofit its shuttered Belvedere assembly plant to make electric vehicles and $250 million to retrofit its Indiana Transmission in Kokomo. factory to produce electric vehicle parts, but the award has not yet been finalized.
The U.S. Department of Energy is using the Advanced Technology Vehicle Manufacturing Loan Program to promote the development of the electric vehicle industry.
Last week, the Energy Department said it would propose loans Rivian Up to $6.6 billion to build a factory in Georgia to start producing smaller, cheaper electric vehicles in 2028.
In December 2022, the Department of Energy finally provided a $2.5 billion low-cost loan to a joint venture General Motors Corporation and LG Energy Solution to help pay for three new lithium-ion battery manufacturing plants in Ohio, Tennessee and Michigan.
In June 2023, the Energy Department said it planned to provide up to $9.2 billion in loans to joint ventures Ford Motor Company South Korea’s SK On is helping it build three battery plants in Tennessee and Kentucky, the largest award ever from a government loan program. The award has not yet been finalized.
