As part of the Biden-Harris Administration’s Investing in America agenda, the US Department of Energy’s (DOE) Loan Programs Office (LPO) has announced the closing of a $7.54 billion loan ($6.85 billion in principal and $688 million in capitalized interest) to StarPlus Energy.
This loan will help finance up to two lithium-ion battery cell and module manufacturing plants in Kokomo, Indiana. StarPlus Energy is a joint venture between FCA US LLC (a wholly owned subsidiary of Stellantis N.V.) and Samsung SDI Co.
The batteries produced at these facilities will be supplied to Stellantis for use in electric vehicle (EV) models sold in North America, supporting domestic demand and strengthening the US position in the rapidly growing EV market.
The project is expected to create approximately 3,200 peak construction jobs, up to 2,800 operational jobs at the plants, and additional roles at a nearby supplier park — boosting the regional economy while contributing to the nearly 16 million jobs created since the Biden-Harris Administration took office.
Once fully operational, the StarPlus facilities will produce about 67 GWh of batteries annually, enough to power approximately 670,000 vehicles. This capacity will significantly expand EV battery manufacturing in North America, reducing reliance on foreign suppliers like China and bolstering the domestic EV supply chain.
LPO borrowers are required to develop and implement a comprehensive Community Benefits Plan (CBP) to ensure engagement with community and labor groups, create good-paying jobs, and enhance local well-being. The new StarPlus facilities will be constructed under the National Maintenance Agreement, ensuring workforce continuity and minimizing project delays through partnerships with local building trades unions.
The investment also supports the Administration’s Justice40 Initiative, which ensures that 40% of the overall benefits from specific federal investments flow to disadvantaged communities historically overburdened by pollution and underinvestment.
To support workforce development, StarPlus is partnering with institutions like Ivy Tech Kokomo and Purdue Polytech and developing Department of Labor-approved electro-mechanical apprenticeships.
This project aligns with President Biden’s Investing in America agenda to strengthen domestic manufacturing technologies. It’s funded through the Advanced Technology Vehicles Manufacturing (ATVM) Loan Program, which supports US manufacturing of advanced technology vehicles, components, and materials that improve fuel economy. Recent ATVM investments have supported critical minerals processing, battery manufacturing, and recycling, reinforcing the development of a reliable domestic EV supply chain.
Filed Under: Technology News