The loan aims to finance the construction of two lithium-ion battery cell and module manufacturing plants in Kokomo, Indiana, significantly boosting domestic electric vehicle (EV) battery production.
The proposed facilities are expected to create approximately 3,200 peak construction jobs and up to 2,800 permanent operations positions, along with hundreds of additional roles at a nearby supplier park, according to the announcement.
At full capacity, the plants will produce about 67 gigawatt-hours (GWh) of batteries annually, sufficient to power approximately 670,000 EVs each year, the DOE estimates. This production is projected to displace the use of 260.3 million gallons of gasoline per year, contributing to reductions in greenhouse gas emissions and dependence on petroleum.
“The output from the new facilities will be sold to Stellantis for use in electric vehicle models that will be sold in North America, helping ensure the United States can meet domestic demand and remain a global leader in the rapidly expanding EV industry,” the DOE said in the announcement.
The DOE said the initiative aligns with the Biden–Harris administration’s goal to enhance the nation’s EV industry and reduce reliance on foreign battery sources, particularly from countries such as China.
Construction of the first plant is slated to begin later this year, with production operations planned to launch in the first quarter of 2025.
The second facility is targeted to start production in 2027. StarPlus Energy is partnering with local educational institutions such as Ivy Tech Kokomo and Purdue Polytech to train local workers, including developing Department of Labor-approved electromechanical apprenticeships, according to the company at the time the projects were announced.
Samsung SDI President and CEO Yoon-ho Choi said at the time, “We will make sincere efforts to bring satisfaction to the market with top-class quality products in the future, and we will contribute towards meeting the climate change target.”
The loan, if finalized, would be offered through the Advanced Technology Vehicles Manufacturing (ATVM) Loan Program, which supports U.S. manufacturing of advanced technology vehicles, qualifying components, and materials that improve fuel economy.
With several recent ATVM projects in the past year, the DOE’s Loan Programs Office is helping support vehicle manufacturers’ transformation plans.
The DOE emphasized that borrowers such as StarPlus Energy are required to develop and implement comprehensive Community Benefits Plans to ensure meaningful engagement with community and labor stakeholders.
The facilities are being constructed under the National Maintenance Agreement, a national collective bargaining agreement that helps ensure workforce continuity and mitigate project delays.
The StarPlus project is expected to benefit disadvantaged communities in line with the Biden–Harris administration’s Justice40 Initiative, aiming for 40 percent of certain federal investments to flow to marginalized communities impacted by pollution.
