StarPlus Energy receives conditional commitment for billion-dollar loan

StarPlus Energy, the battery cell joint venture between Stellantis and Samsung SDI, has received a conditional commitment from the US government for a loan of up to $7.54 billion for the two battery cell factories in Kokomo, Indiana.

Image: Stellantis

The US Department of Energy intends to fund the loan once StarPlus Energy has met “certain technical, legal, environmental, and financial conditions.” The conditional commitment includes up to 6.85 billion dollars in principal and $688 million in capitalised interest, totalling $7.54 billion. The loan will help finance two battery cell and module factories in Kokomo. The factories’ output is intended for Stellantis’ electric cars.

Stellantis and Samsung SDI are reportedly planning a total production capacity of 67 GWh per year in Kokomo. The first plant has been under construction since March 2023 and is scheduled to go into operation in the first quarter of 2025 with an annual production capacity of 33 GWh. Production at the second plant is expected to start in 2027, with 34 GWh planned there. According to the manufacturer, the total investment for both plants will amount to more than 6.3 billion dollars and create a total of 2,800 new jobs.

The partners announced at the end of May 2023 that they are planning one or two more battery factories in the US. The US Inflation Reduction Act had created “very favourable” investment conditions in the country, explained Stellantis CEO Carlos Tavares, who has since resigned, at the time. Stellantis and Samsung SDI launched the StarPlus Energy battery joint venture in 2021.

Stellantis is also building a 45 GWh battery factory with LG Energy Solution in the Canadian province of Ontario. According to earlier statements, the car manufacturer wants to create production capacities for battery cells with a total volume of 400 GWh by 2030. However, it is unclear whether this target will be realised. In Europe, Stellantis is already known to have stepped on the brakes with its joint venture ACC.

energy.gov

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