DETROIT — A Stellantis joint venture with Samsung SDI has won a US government commitment to secure a $7.54 billion loan to help build two electric vehicle battery plants in Kokomo, Indiana.
The project, which is being built by StarPlus Energy LLC, is expected to create at least 2,800 jobs at factories and a nearby park for parts supply companies, the Energy Department said Monday.
The loan has yet to be finalized, but the government said the commitment shows its intention to finance the project. To get the loan, StarPlus must develop a plan to engage with community and labor leaders to create good paying jobs. The government must also meet technical, legal, environmental and financial requirements before financing the loan.
It is unclear whether the loan will be completed before President-elect Donald Trump takes office on January 20. On the campaign trail, Trump committed to ending the funding for such projects, which he called the “green new scam”. A message was left Monday seeking comment from the Trump transition team.
The Energy Department did not directly respond to a question about whether the loan would be funded before inauguration, but said it would be irresponsible for “any government to turn its back on private sector partners, states and communities that benefit from less energy.” costs and new economic opportunities” from loans.
The plants would make battery cells and modules for electric vehicles to be sold in North America, the department said. At full capacity, the plants will produce enough batteries to power around 670,000 vehicles a year.
“This will greatly expand EV battery manufacturing capacity in North America and reduce America’s reliance on rival foreign nations such as China,” the statement said.
If completed, Stellantis would get $6.85 million in principle plus $688 million in interest on the project.
At the end of last month, the electric vehicle manufacturer Rivian Automotive secured a $6.6 billion loan startup struggling to turn a profit to build a stalled factory in Georgia.
The loan ad is coming A day after Stellantis confirmed it CEO Carlos Tavares is to step down after nearly four years at the helm of the automaker, which owns brands such as Jeep, Ram and Citroën and Peugeot. The world’s fourth-largest automaker announced on Sunday that its board had accepted Tavares’ resignation, effective immediately, amid an ongoing battle with declining sales.
The company says a new interim executive committee led by chairman John Elkann will be put in place while the CEO search is conducted.
