The Department of Energy plans to loan up to $7.54 billion to Stellantis and Samsung to build a pair of electric vehicle battery factories in Indiana, the agency announced Monday. 

What You Need To Know

  • The Department of Energy plans to loan up to $7.54 billion to Stellantis and Samsung to build a pair of electric vehicle battery factories in Indiana

  • The joint venture known as StarPlus Energy will make batteries for Stellantis to use in electric vehicles that are sold in North America

  • Planned for Kokomo, Indiana, the factories are expected to create 3,200 construction jobs and 2,800 operations jobs

  • The Energy Department said the plants will help to reduce U.S. reliance on China and other adversarial countries for EV batteries

The loans are some of the last to be initiated as part of the Biden administration agenda to bring manufacturing back to the United States.

The joint venture known as StarPlus Energy will make batteries for Stellantis to use in electric vehicles that are sold in North America, “helping ensure the United States can meet domestic demand and remain a global leader in the rapidly expanding EV industry,” the Energy Department said in a statement.

Planned for Kokomo, Indiana, the factories are expected to create 3,200 construction jobs and 2,800 operations jobs. Once built, the factories will be able to supply enough batteries for 670,000 vehicles annually. 

The Energy Department said the plants will help to reduce U.S. reliance on China and other adversarial countries for EV batteries. China is the world’s largest supplier of EV batteries, producing 79% of all lithium-ion battery packs. The United States currently produces 6.2% of the world’s batteries, according to the International Energy Agency.