Biden Admin Pushes $7 Billion Loan for EV Battery Plants in Indiana

The Biden administration announced a $6.85 billion loan on Monday to build two electric vehicle (EV) battery plants in Kokomo, Indiana. The factories, developed by StarPlus Energy—a joint venture between Stellantis and South Korea’s Samsung SDI—will support the growing EV industry by producing batteries for 670,000 vehicles annually. This move is part of broader efforts to expand domestic battery production and reduce reliance on China.

The new facilities will create 3,200 construction jobs and employ 2,800 workers once operational. This announcement follows a $6 billion loan to Rivian last week for a factory in Georgia. Both projects are key to the administration’s push for clean energy manufacturing, with loans totaling nearly $34 billion under its clean transportation initiatives.

The loan arrives at a time of significant political contention. President-elect Donald Trump has pledged to dismantle Biden administration EV policies, including incentives like the $7,500 federal tax credit for electric car buyers. Republican lawmakers, who often criticize federal spending on green energy, may face pressure to support projects delivering jobs and economic benefits to their districts.

Stellantis, owner of Jeep, Dodge, and Chrysler, is gearing up to launch several EV models, including the Jeep Wagoneer SUV and Ram pickups. The loan will help Stellantis compete in a market where it has lagged behind. EVs currently make up only 9% of U.S. vehicle sales but are projected to reach 50% by 2030 under Biden administration goals.

China’s dominance in the battery supply chain remains a concern. The Kokomo plants aim to secure domestic production of EV batteries, reducing dependence on foreign sources. Despite challenges, EV sales rose 11% in the third quarter, signaling steady growth in the market.

The loans are expected to be finalized before President-elect Trump’s inauguration in January, potentially locking in funding before his administration takes office.

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