The US Department of Energy unveiled plans to provide up to $7.54 billion in loans to StarPlus Energy, a partnership between automaker Stellantis and South Korea’s Samsung SDI, to construct two electric vehicle battery plants in Kokomo, Indiana.
The proposed funding package includes $6.85 billion in principal and $688 million in capitalized interest. Once operational, the facilities are expected to produce 67 gigawatt-hours of batteries annually, sufficient to power roughly 670,000 vehicles.
The first plant is scheduled to begin operations in early 2025, with the second facility following in 2027. This expansion adds to Stellantis’s growing battery network, which includes a planned gigafactory in Canada through a separate partnership with LG Energy Solution.
The loan remains conditional and requires final approval. Its timing coincides with other major DOE funding initiatives in the EV sector, including a proposed $6.6 billion loan to Rivian for its Georgia plant and an earlier $2.5 billion loan to the GM-LG joint venture for facilities across three states.
The department has also earmarked additional funding for Stellantis, including $334.8 million for converting its Belvidere Assembly Plant to EV production and $250 million for EV component manufacturing in Kokomo, though these awards are still pending finalization.
