US Commits $7.54 Billion for EV Battery Plants

The U.S. government has committed to providing a $7.54 billion loan to a joint venture between Stellantis and Samsung SDI for constructing two electric vehicle battery plants in Kokomo, Indiana. This initiative by StarPlus Energy LLC is expected to significantly enhance U.S. EV production capacity, creating at least 2,800 jobs at the plants and hundreds more at a nearby supplier park. The project aligns with the Biden administration's goal to boost domestic EV manufacturing and reduce reliance on foreign energy sources, particularly from China. However, the loan's finalization requires StarPlus to meet technical, environmental, and financial conditions, and it remains uncertain if the funding will be confirmed before the Trump administration takes office, given Trump's opposition to such projects. At full capacity, the plants are projected to produce enough batteries for approximately 670,000 vehicles annually, displacing 260.3 million gallons of gasoline each year. This follows a similar $6.6 billion loan granted to Rivian Automotive for a manufacturing plant in Georgia.