Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe Now
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 Indiana.
The previously announced project being built by StarPlus Energy LLC in Kokomo is expected to create at least 2,800 jobs at the two 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.
“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.
Please enable JavaScript to view this content.
“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.”
Only the Federal Government would “LOAN” a company that cannot make a profit 6.6 billion!
The federal government has literally done this all the time for the entire history of our country.
Only half as bad as loaning the richest man in the world about half a billion dollars for his Tesla company.
What an absolute waste of money.
Once gasoline hits $1.80 again it will be difficult to move electric vehicles.
And just how soon, Peter, will gas be $1.80 again? When the XL Pipeline is finally built by Trump? That ain’t happening. When US oil companies “drill baby drill”? That ain’t happening either. Fossil fuels have as much of a future as your great-great-grandfather. Adapt, Peter, or get left behind muttering “if only…”
The only way this happens is with a massive economic crash. It’s literally not possible to sell gasoline at $1.80/gal and make a profit.
Regarding “fossil fuels”, Brent how do you suppose the energy to “fuel” these electric cars come from? It ain’t solar buddy! Your freaky green types don’t want nuclear or natural gas….you want horse and buggies but wait, what about horse farts????
John, renewable energy generates over 20% of all electricity in the US – and that percentage continues to grow. In 2022, annual U.S. renewable energy generation surpassed coal for the first time in history. I’m not a freaky green type either, just a Republican boomer who looks to the future because it’s more exciting than looking at the past (apologies to your horse).
Not too bright, are you?