In a significant move to bolster the United States' electric vehicle (EV) industry, the U.S. Department of Energy's (DOE) Loan Programs Office (LPO) announced a conditional commitment of up to $7.54 billion to StarPlus Energy LLC on December 2, 2024. This substantial investment aims to finance the construction of up to two lithium-ion battery cell and module manufacturing plants in Kokomo, Indiana.

StarPlus Energy, a joint venture between FCA US LLC (a subsidiary of Stellantis N.V.) and Samsung SDI Co. Ltd., will utilize the LPO funding to establish cutting-edge facilities capable of producing approximately 67 GWh of batteries annually. This output is projected to power around 670,000 electric vehicles per year, significantly contributing to the nation's EV infrastructure.

The project is expected to create a significant number of jobs, both directly and indirectly. Approximately 3,200 peak construction jobs will be generated during the building phase of the two lithium-ion battery manufacturing plants in Kokomo, Indiana. Once operational, the plants are projected to employ up to 2,800 workers. Additionally, hundreds of jobs will be created at a nearby supplier park, further contributing to the regional economy.

By investing in domestic battery production, the United States is reducing its dependence on foreign suppliers, particularly China, which currently dominates the global battery market. This strategic move will enhance supply chain security and strengthen the nation's position in the rapidly growing EV industry.

StarPlus Energy plans to implement a comprehensive Community Benefits Plan (CBP) to ensure that the project benefits local residents and workers.

Partnerships with Ivy Tech Kokomo and Purdue Polytech will provide essential training to local workers, ensuring a skilled workforce. Additionally, StarPlus will develop Department of Labor-approved electro-mechanical apprenticeships.

The project will adhere to the National Maintenance Agreement, a national collective bargaining agreement, guaranteeing fair labor practices and protecting workers' rights.

A Step Towards a Sustainable Future

The StarPlus project is expected to contribute to a more sustainable future by reducing reliance on fossil fuels and lowering greenhouse gas emissions. By displacing the usage of 260.3 million gallons of petroleum annually, the project will help improve air quality and mitigate climate change.

A Pivotal Moment for the US EV Industry

The LPO's investment in StarPlus Energy marks a significant milestone in the United States' efforts to become a global leader in the EV industry. By supporting domestic battery production, the government is empowering American manufacturers to compete on a global scale and drive innovation.

As the project progresses, it is anticipated to have a far-reaching impact on the economy, the environment, and the nation's energy security.