Powering the Future: A Billion-Dollar Investment in EV Batteries

The U.S. Energy Department is planning to loan $7.54 billion to a Stellantis and Samsung SDI joint venture to construct electric vehicle battery plants in Indiana. The facilities aim to produce 67 GWh annually, enough for 670,000 vehicles. This initiative is part of a broader strategy to boost the EV sector.

The U.S. Energy Department announced plans to loan $7.54 billion to a joint venture between Stellantis and Samsung SDI. The funds are intended to construct two electric vehicle battery plants in Indiana. The conditional loan, combining $6.85 billion in principal and $688 million in capitalized interest, aims to support the StarPlus Energy joint venture.

When fully operational, the Kokomo, Indiana plants are expected to produce 67 GWh annually, powering approximately 670,000 vehicles. Although the timeline for finalizing the government-subsidized loan remains uncertain, the venture represents a significant push to advance the EV industry amidst political scrutiny.

Stellantis plans to open the first plant in early 2025 and the second by 2027. Additionally, a gigafactory in Canada, in collaboration with LG Energy Solution, is on the horizon. This effort aligns with larger trends as DOE boosts support for EV development through various loans to prominent ventures like those with Rivian, GM, Ford, and others.

(With inputs from agencies.)