US commits to $7.54B loan for Stellantis assignment to construct 2 EV battery plants

DETROIT — A Stellantis joint assignment with Samsung SDI has won a commitment from the U.S. government for up to a $7.54 billion loan to assist construct two electric vehicle battery plants in Kokomo, Indiana.

The assignment being built by StarPlus vigor LLC is expected to make at least 2,800 jobs at the plants and hundreds more at a nearby park for parts supply companies, the vigor Department said Monday in a statement.

The loan still must be finalized, but the government said the commitment shows its intent to finance the assignment. To get the loan, StarPlus must develop a schedule to engage with throng and labor leaders to make excellent paying jobs. It also has to meet technical, legal, environmental and financial conditions before the government will pool the loan.

It’s ambiguous whether the loan will be finalized before President-elect Donald Trump takes office on Jan. 20. On the campaign trail, Trump pledged to complete capital for such projects, which he called the “green recent scam.” A communication was left Monday seeking comment from the Trump shift throng.

The vigor Department didn’t directly respond 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 vigor costs and recent 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 packed 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 earnings for the assignment.

Late last month electric vehicle maker Rivian Automotive got a $6.6 billion loan to construct a factory in Georgia that has stalled as the enterprise has struggled to make a earnings.

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 globe’s fourth-largest automaker announced that its board accepted Tavares’ resignation Sunday, effective immediately, amid a continued battle with slumping sales.

The business says a recent interim executive committee, led by Chairman John Elkann, will be established while a CEO search is underway.