StarPlus Energy Gigafactory Secures $7.54B Loan, Begins Production Amid Workforce Reductions
StarPlus Energy Gigafactory in Indiana has commenced battery production and secured a $7.54 billion federal loan. This funding underpins the joint venture between Stellantis and Samsung SDI, which aims to enhance EV capacity amid shifting market demands.
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The StarPlus Energy Gigafactory has initiated active production of lithium-ion batteries following a finalized $7.54 billion Department of Energy loan that covers both Kokomo facilities. The total investment across the two plants exceeds $6.3 billion, with Samsung SDI holding a 51% stake in the venture.
However, Stellantis has reduced its salaried workforce by 18% at the facility due to changing demand for electric vehicles. The first plant, operational by 2025 with a 33 GWh annual capacity, is complemented by the second plant, which is projected to start in 2027 with a target capacity of 34 GWh.
With the Inflation Reduction Act's EV tax benefits, the joint venture aims to support the production of up to 25 new battery electric vehicles by 2030. The shifting labor dynamics may pose risks to staffing stability as market conditions evolve.
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