Stellantis-Samsung JV wins $7.54B commitment from US gov't
12/03/2024 07:59 AM
A Stellantis and Samsung SDI joint venture, named StarPlus Energy LLC, won a commitment for up to a $7.54 billion loan from the US government.
The billion-dollar loan will reportedly help the Stellantis-Samsung SDI joint venture build two electric vehicle (EV) battery plants in Kokomo, Indiana. Stellantis and Samsung SDI's joint venture was formed in October 2021. The companies aimed to produce lithium-ion batteries for the North American market. During InterBattery 2022, Samsung SDI's CEO teased that the company was considering ways to "beef up production in the United States."
StarPlus Energy LLC is expected to generate 2,800 jobs at its two new EV battery plants. The plants are also estimated to create a few hundred jobs at a park near the plants, which is expected to supply parts for the companies, noted the US Energy Department.
The US government has committed to give StarPlus Energy up to a $7.54 billion loan to finance its project. However, the loan must still be finalized. StarPlus Energy must develop a plan to help it engage with the community in Kokomo, Indiana. The Stellantis and Samsun SDI JV must also talk with labor leaders so it creates good-paying jobs.
Besides developing plans with the local community and labor leader, StarPlus Energy must also meet technical, legal, environmental, and financial conditions to finalize the government loan. Following StarPlus Energy's progress with finalizing its $7.54 billion loan will be interesting.
President-elect Donald Trump will take office by January 20, 2025. According to the Associated Press, Trump pledged to end funding for programs like StarPlus Energy's project in Indiana.
The Energy Department did not clarify if the loan would be finalized before Trump's inauguration. However, it did comment that it would be irresponsible for "any government to turn its back on private sector partners, states, and communities that are benefiting from lower energy costs and new economic opportunities from the loans."
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