The US Department of Energy’s Loan Programs Office (LPO) announced a conditional commitment for a loan of up to $7.54 billion to StarPlus Energy LLC, a joint venture between FCA US LLC and Samsung SDI Co. Ltd., to finance the construction of two lithium-ion battery cell and module manufacturing plants in Kokomo, Indiana.
The project aims to support the growth of electric vehicle (EV) production in North America, with the facilities expected to produce approximately 67 GWh of batteries annually, enough to supply around 670,000 vehicles. The new plants will reduce America’s reliance on foreign nations for EV battery manufacturing and help slash harmful pollutants.
The loan will also create over 5,200 jobs during construction and operations, boosting the regional economy and contributing to the nearly 16 million jobs created since President Biden took office. Additionally, the project is expected to benefit disadvantaged communities in line with the Justice40 Initiative, which aims to allocate 40% of federal investment benefits to marginalized communities.
LPO borrowers must develop a comprehensive Community Benefits Plan, which ensures they engage meaningfully with community and labor stakeholders to create good-paying jobs and improve local well-being. The project is supported by President Biden’s Investing in America agenda to onshore domestic manufacturing technologies.
Source: https://www.energy.gov/lpo/articles/lpo-announces-conditional-commitment-starplus-energy-construct-lithium-ion-battery