Battery Boon: U.S. Backs Stellantis, Samsung SDI's Joint Venture with $7.54B Loan

In a significant boost to the electric vehicle (EV) industry, the U.S. Department of Energy has proposed a $7.54 billion loan to Stellantis and Samsung SDI's battery joint venture, StarPlus Energy. This substantial investment aims to accelerate the production of electric vehicle batteries in the United States, supporting the nation's transition to cleaner energy sources.

The proposed loan comes amidst the Biden administration's efforts to promote electric vehicle adoption and create jobs in the clean energy sector. Stellantis, the world's fourth-largest automaker, and Samsung SDI, a leading battery manufacturer, have joined forces to create a robust battery ecosystem that supports their ambitious electrification plans.

The joint venture, which will invest over $6.3 billion in total, is set to build two gigafactories in Kokomo, Indiana, with an initial combined annual production capacity of 67 gigawatt hours (GWh). The first gigafactory is expected to commence production in the first quarter of 2025, with the second following in early 2027. This significant investment is expected to create over 2,800 new jobs in the region.

The loan will help facilitate the construction of the second gigafactory, which will have an initial annual production capacity of 34 GWh. This expansion aligns with Stellantis' goal of offering at least 25 new BEVs in the U.S. by the end of the decade, as outlined in its Dare Forward 2030 strategic plan.

Stellantis and Samsung SDI have praised the U.S. government's support, emphasizing the importance of the loan in accelerating the development of their battery production capabilities. The companies have committed to creating a compelling case for locating their sixth gigafactory in Kokomo, further solidifying their presence in the U.S. market.

As the global demand for electric vehicles continues to grow, the need for a robust and sustainable battery supply chain is more crucial than ever. The U.S. loan to Stellantis and Samsung SDI's joint venture is a testament to the Biden administration's commitment to fostering innovation and job creation in the clean energy sector.




In conclusion, the proposed $7.54 billion loan to Stellantis and Samsung SDI's battery joint venture is an encouraging development in the U.S.'s transition to cleaner energy sources. The investment will not only facilitate the expansion of battery production capacity but also create jobs and support the growth of the EV industry. As the demand for electric vehicles continues to rise, the need for a strong and sustainable battery supply chain becomes increasingly important, making the U.S. government's support for the joint venture a strategic move in the right direction.