DETROIT (AP) The U.S. government has committed to lending up to $7.54 billion to a Stellantis joint venture with Samsung SDI to assist in the construction of two electric vehicle battery factories in Kokomo, Indiana.
According to a statement released by the Energy Department on Monday, the StarPlus Energy LLC project is anticipated to generate at least 2,800 employment at the factories and hundreds more in a nearby park for companies that sell parts.
Although the financing has not yet been approved, the government stated that the promise demonstrates its intention to fund the project. In order to receive the loan, StarPlus needs to come up with a strategy to work with labor and community leaders to create well-paying jobs. Before the government will finance the loan, it must also satisfy technical, legal, environmental, and financial requirements.
It is uncertain if the loan will be completed prior to Donald Trump’s inauguration on January 20. Trump referred to these initiatives as the “green new scam” and promised to stop supporting them throughout the campaign. On Monday, a message was left asking the Trump transition team for response.
In response to a question about whether the loan would be financed prior to the inauguration, the Energy Department stated that it would be reckless for any government to ignore states, communities, and private sector partners who are gaining from the loans’ reduced energy costs and new economic opportunities.
According to the agency, the plants would produce modules and battery cells for electric vehicles that would be marketed in North America. The factories will generate enough batteries annually at full capacity to power around 670,000 automobiles.
According to the statement, this will significantly increase North America’s capacity to produce EV batteries and lessen America’s need on hostile foreign countries like China.
In the event that the project is approved, Stellantis would get $6.85 billion in principle plus $688 million in interest.
Rivian Automotive, an electric vehicle manufacturer, received a $6.6 billion loan late last month to construct a factory in Georgia, but the project has stagnated as the business has had difficulty turning a profit.
The loan news was made a day after Stellantis announced that Carlos Tavares, the CEO of the automaker that owns Jeep, Ram, Citroën, and Peugeot, is leaving his position after almost four years in the top job. Amid a persistent battle with declining sales, the fourth-largest carmaker in the world declared on Sunday that its board has accepted Tavares’ resignation, effective immediately.
While a search for a new CEO is being conducted, the company said a new interim executive committee will be formed, with Chairman John Elkann at its head.
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