StarPlus Energy Gigafactory Confirms Federal Loan and Active Production

The StarPlus Energy Gigafactory is a lithium ion battery manufacturing complex located in Kokomo, Indiana, built through a joint venture between Stellantis and Samsung SDI. Since the second plant was announced in 2023, the venture has finalized a $7.54 billion Department of Energy loan covering both Kokomo facilities, and the first gigafactory has moved into active battery production.

StarPlus Energy Gigafactory Trims Staff Amid Shifting EV Demand

In August 2025, Stellantis cut 59 salaried positions, about 18 percent of the plant’s salaried staff, citing shifting US electric vehicle demand, even as Indiana’s industrial pipeline keeps expanding with projects such as the SK Hynix Advanced Packaging Facility, a $4 billion semiconductor investment in West Lafayette. Samsung SDI holds a 51 percent stake in the venture funding the second Kokomo plant.

Project Overview

• Project Name: StarPlus Energy Gigafactory
• Location: Kokomo, Indiana
• Project Value: Combined investment of over $6.3 billion across both plants, backed by a $7.54 billion DOE loan finalized in December 2024
• Client/Owner: StarPlus Energy LLC, a joint venture of Stellantis and Samsung SDI
• Ownership Structure: Samsung SDI holds a 51 percent stake in the venture financing the second plant
• Key Components: Two co-located lithium ion battery cell and module manufacturing plants; a third Kokomo plant is in environmental review, per a Department of Energy draft assessment dated May 2026
• Funding Source: U.S. Department of Energy Advanced Technology Vehicles Manufacturing Loan Program
• Construction Start: First plant construction began 2022; second plant construction underway since 2023
• Current Status: First plant in active production; second plant still targeted for early 2027
• Strategic Impact: Combined 67 gigawatt hour annual capacity at full scale, with up to 2,800 operations jobs projected

Project Team

• Owner/Developer: StarPlus Energy LLC, a joint venture of Stellantis and Samsung SDI
• Financing Partner: U.S. Department of Energy Loan Programs Office
• Local Government/Economic Partner: City of Kokomo and the Greater Kokomo Economic Development Alliance
• Workforce Training Partners: Ivy Tech Kokomo and Purdue Polytechnic

Reported 28th July 2023: Stellantis NV and Samsung SDI today announced that they have signed a memorandum of understanding to construct a second StarPlus Energy Gigafactory in Indiana. Under the terms of the current joint venture with StarPlus Energy, the battery factory manufacturing facility was signed. The facility intends to begin operating in 2027 with a target initial annual production capacity of 34 gigawatt hours (GWh).

In May 2022, the traditional automaker and Samsung SDI established a joint venture and announced intentions to invest more than $2.5 billion in a lithium-ion battery manufacturing facility in the US. By 2025, Indiana’s first battery plant will open with a 33 GWh annual manufacturing capacity as its goal. Stellantis anticipates being able to offer up to 25 new battery electric vehicles in North America thanks to the two battery factories it has with Samsung.

Also Read: Eleven Park Neighbourhood Project Breaks Ground in Indiana

Funding and benefits received for the second StarPlus Energy Gigafactory

Stellantis will be able to benefit from the EV tax benefits provided by the Inflation Reduction Act (IRA) thanks to the two battery plants in the US. The IRA’s tax incentives have considerably increased the selling of battery electric vehicles in the US. For instance, Ford stated that sales of the F-150 Lightning increased 100% in the second quarter.

Samsung SDI President and CEO Yoon-ho Choi said, “We built a solid foundation for establishing our footprint in North America by creating the joint venture with Stellantis last year. By producing products with the highest standards of safety and quality, the second facility will hasten our market penetration in the US and aid Stellantis in advancing the country’s transition to an era of electric vehicles.

According to Stellantis CEO Carlos Tavares, “This new facility will help us achieve our ambitious target to offer at least 25 new battery electric vehicles for the North American market by the end of the decade.” “We are laying the next steps to achieving our carbon neutrality commitment by 2038 while adding more capacity in the United States with our fantastic partner Samsung SDI.”