US commits to $7.54 billion loan for Stellantis venture to build 2
electric vehicle battery plants
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[December 03, 2024] DETROIT
(AP) — A Stellantis joint venture with Samsung SDI has won a commitment
from the U.S. government for up to a $7.54 billion loan to help build
two electric vehicle battery plants in Kokomo, Indiana.
The project being built by StarPlus Energy LLC is expected to create at
least 2,800 jobs at the plants and hundreds more at a nearby park for
parts supply companies, the Energy Department said Monday in a
statement.
The loan still must be finalized, but the government said the commitment
shows its intent to finance the project. To get the loan, StarPlus must
develop a plan to engage with community and labor leaders to create good
paying jobs. It also has to meet technical, legal, environmental and
financial conditions before the government will fund the loan.
It's unclear whether the loan will be finalized before President-elect
Donald Trump takes office on Jan. 20. On the campaign trail, Trump
pledged to end funding for such projects, which he called the “green new
scam.” A message was left Monday seeking comment from the Trump
transition team.
The Energy Department didn't directly answer a question about whether
the loan would be funded before the inauguration, but said it would be
irresponsible for "any government to turn its back on private sector
partners, states, and communities that are benefiting from lower energy
costs and new economic opportunities” from the loans.
The plants would make battery cells and modules for electric vehicles to
be sold in North America, the department said. At full capacity, the
plants will produce enough batteries to supply about 670,000 vehicles
per year.
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A Stellantis logo is shown at the North American International Auto
Show in Detroit, Sept. 13, 2023. (AP Photo/Paul Sancya, File)
 “This will greatly expand EV battery
manufacturing capacity in North America and reduce America's
reliance on adversarial foreign nations like China,” the statement
said.
If finalized, Stellantis would get $6.85 billion in principle plus
$688 million in interest for the project.
Late last month electric vehicle maker Rivian Automotive got a $6.6
billion loan to build a factory in Georgia that has stalled as the
startup has struggled to make a profit.
The loan announcement comes one day after Stellantis confirmed that
CEO Carlos Tavares is stepping down after nearly four years in the
top spot of the carmaker that owns brands such as Jeep, Ram and
Citroën and Peugeot. The world’s fourth-largest automaker announced
that its board accepted Tavares’ resignation Sunday, effective
immediately, amid a continued struggle with slumping sales.
The company says a new interim executive committee, led by Chairman
John Elkann, will be established while a CEO search is underway.
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