/cdn.vox-cdn.com/uploads/chorus_asset/file/25771556/1245570016.jpg "Stellantis and Samsung to get .54 billion federal loan for two EV battery factories")
Department of Energy initially Another loan approved To help build electric vehicle battery factories in the US. This time, a joint venture between Stellantis and Samsung SDI will get $7.54 billion to build two EV battery plants in Kokomo, Indiana.
The project is expected to create 3,200 jobs, as well as 2,800 operational jobs at the plants and hundreds of jobs at a nearby supplier park. The conditional loan commitment will provide $7.54 billion – $6.85 billion principal and $688 million capitalized interest – to StarPlus Energy LLC, which is jointly owned by Stellantis and Samsung SDI.
The loan will come from DOE’s Advanced Technology Vehicle Manufacturing (ATVM) program, which was revived by President Joe Biden in 2022 to help fund the growing EV manufacturing industry in the US.
The project is expected to create 3,200 jobs, plus 2,800 operations jobs
Like a $6.6 billion loan Conditional approval for Rivian Last month, the new loan given to StarPlus Energy will have to work hard to finalize its approval before Donald Trump takes over the White House.
Trump has promised Biden should reverse or cancel most of the spending on EVs Once he assumes that position. He has said he would eliminate the $7,500 tax credit for new EV purchases, as well as eliminate the rest of the Inflation Reduction Act (IRA) spending bill. Supposedly, this would also include the ATVM loan program – even though it predates the IRA.
The loan program has achieved almost legendary status in the EV startup world thanks to a $465 million loan it made to Tesla in 2009, which is credited with helping save the company from early demise. But this program remained incomplete during the first Trump administration. a number cash strapped EV startups are not getting any response to their funding requests.
The Stellantis-Samsung plant is the latest beneficiary of the program. According to the DOE, the StarPlus project will produce approximately 67 GWh of batteries, enough to supply approximately 670,000 vehicles annually when running at full capacity.
Stellantis, which owns brands such as Jeep, Dodge, Chrysler and RAM and international brands such as Peugeot and Fiat, is going through some corporate turmoil that could determine its ability to meet the demands of the program. The company’s CEO, Carlos Tavares, Recently announced that he will step down Amid a sharp decline in sales in the US and abroad. And there is Stellantis struggling to keep pace Along with its competitors, it is turning to electric and software-defined vehicles.
