US Pledges $7.5B Loan for Stellantis EV Battery Plants in Indiana

Creating over 3,000 new jobs, two new electric vehicle battery factories are potentially coming to Kokomo, Indiana. Thanks to a loan commitment from the U.S. government, automaker Stellantis is partnering with Samsung SDI to help build the facilities.

While the loan funds still need to be finalized, which may or may not be done before President Biden leaves office, the government is committing about $7.5 billion to the project. Regardless of whether Donald Trump or Biden is in office, the Energy Department has stated the loan and project are essential for the country.

“The project will greatly expand EV battery manufacturing capacity in North America and reduce America’s reliance on adversarial foreign nations like China, as well as other foreign sourcing of EV batteries,” stated the agency.

StarPlus Energy will be in charge of developing the plants. However, for StarPlus to be involved, it must meet certain requirements. The firm must present a solid strategy for creating local, well-paying jobs through cooperation with community leaders. Other conditions for government loan funding obligate StarPlus to meet several environmental, technical, legal, and financial agreements.

Once complete, the factories will produce battery cells and modules for North American EVs. Fully operational, the combined plants will pump out enough batteries to power 670,000 EVs every year.

CEO Departs as Stellantis Struggles

The government loan and new EV plant projects are finally some good news for struggling Stellantis. As of late, the Jeep maker has been faced with increased competition as well as a perceived inability to adjust to a changing car market.

Stellantis’ net income dropped off a cliff in the third quarter, falling 27%. At the end of October, the company reported 33 billion euros (about $36 billion) in revenue, down from 45 billion euros year over year. The company also predicted it will likely report a negative cash flow situation by the end of 2024.

Without a positive financial direction in sight, Stellantis CEO Carlos Tavares stepped down on Dec. 1. The company has already started searching for a permanent replacement. Yet, for now, an interim executive committee led by chairman John Elkann will steer the company.

“Our thanks go to Carlos for his years of dedicated service and the role he has played in the creation of Stellantis,” said Elkann, per Fortune.