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Federal government proposes a more than $7.5 billion loan for Kokomo EV battery plants

By Timoria Cunningham

Posted December 3, 2024

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Construction workers at the Kokomo plant guide the first beam into place after a ceremonial signing. They wear reflective gear and hard hats.

The joint venture by Stellantis and Samsung SDI is expected to create thousands of jobs. Construction on the first battery plant began in early 2023. The second was announced in October that year. (Courtesy of Stellantis)

The U.S. Department of Energy announced a conditional commitment to loan up to $7.5 billion for two electric vehicle battery plants in Kokomo. The joint venture by Stellantis and Samsung SDI is expected to create thousands of jobs.

Before the loan is finalized, the joint venture between the two companies — called Star Plus Energy — must meet certain requirements. One of those includes developing a plan to work with labor organizations and local communities to create high paying jobs.

Star Plus is also partnering with local schools, such as Ivy Tech in Kokomo and the Purdue Polytechnic Institute, to ensure workers have the proper training required to fill the jobs.

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The first battery plant was announced in May 2022 and is expected to begin production by early 2025. The second, announced in October 2023, is slated to begin production by 2027. In total, both plants are expected to employ about 2,800 people with the company investing a combined $6.3 billion in the projects.

The plants will make battery cells and modules which will then be sold to Stellantis for use in their electric vehicle models sold in North America. According to the DOE, both plants will create enough output to supply up to 670,000 vehicles a year.

Timoria is our labor and employment reporter. Contact her at tcunningham@wfyi.org.