DOE officials estimate StarPlus batteries will replace about 260 million gallons of petroleum waste per year. The project will produce at full capacity about 67 GWh of batteries which will be enough to supply approximately 670,000 vehicles annually. File Photo by James Atoa/UPI |
License PhotoDec. 2 (UPI) — The U.S. Department of Energy on Monday announced a multi-billion dollar loan to jumpstart a joint project in Indiana between Stellantis and Samsung to aid battery production for the rapidly expanding electric vehicle industry.
The Energy Department’s Loan Programs Office announced a $7.54 billion conditional loan commitment to StarPlus Energy LLC which, if finalized, will help finance construction of up to two lithium-ion battery cell and module manufacturing facilities in Kokomo, Ind., according to a release.
StarPlus is a joint venture between FCA US LLC — a wholly owned subsidiary of Stellantis N.V. — and Samsung SDI Co. Ltd.
The loan commitment includes more than $6 billion in principal financing and about $688 million in capitalized interest.
The department said the project will “greatly expand” EV battery manufacturing capacity in North America and will “reduce America’s reliance on adversarial foreign nations like China, as well as other foreign sourcing of EV batteries.”
Energy Department officials estimate the use of StarPlus batteries will replace about 260 million gallons of petroleum waste per year. The project will produce at full capacity about 67 GWh of batteries which will be enough to supply approximately 670,000 vehicles annually.
According to the department, the project is expected to create roughly 3,200 construction jobs at its peak, up to 2,800 jobs in operations and “hundreds” of additional jobs at a nearby supplier park.
It added the output from the new Indiana plants will be sold to Stellantis for its use in EV models to likewise be sold in North America.
The news of the loan arrived the day after Stellantis CEO Carlos Tavares abruptly resigned following a precipitous drop in stock value this year.
Meanwhile, the StarPlus venture is currently developing electro-mechanical apprenticeships approved by the Department of Labor.
However, the Energy Department pointed out that while the conditional commitment does indicate the federal government’s intent to finance the business project, certain technical, legal, environmental and financial conditions first must be met prior to the department entering a “definitive” stage to fund a loan.
In addition, the Energy Department said StarPlus will partner with local educational institutions — such as Ivy Tech Kokomo and Purdue Polytech — to ensure local workers have the training required to fill the jobs. Federal LPO borrowers are required to develop and implement a comprehensive Community Benefits Plan.
The new StarPlus facilities in Indiana will be constructed under an agreement overseen by the National Maintenance Agreement Policy Committee.
All local building trades unions are signatories of the National Maintenance Agreement to help ensure workforce continuity and mitigate project delays.
Energy said the CBP’s “ensure borrowers meaningfully engage with community and labor stakeholders to create good-paying jobs and improve the well-being of the local community and workers.”
