11:02 AM EST, 12/02/2024 (MT Newswires) -- Stellantis' ( STLA ) FCA US subsidiary and Samsung SDI, in a joint venture called StarPlus Energy, have received conditional approval for a $7.54 billion loan package through the US Department of Energy to help fund construction of two lithium-ion battery cell and module manufacturing plants in Kokomo, Indiana, proposed by the companies, the Loan Program Office of the federal agency said Monday.

The loan is conditioned on the partnership satisfying certain technical, legal, environmental, and financial conditions. If finalized, the loan for the companies' StarPlus Energy joint venture would consist of $6.85 billion in principal and $688 million in capitalized interest, the department's loan office said.

At full capacity, the project is expected to produce about 67 gigawatt hours of battery capacity, which would be enough to to supply around 670,000 vehicles each year while replacing about 260.3 million gallons of petroleum annually, the loan office said.

Stellantis ( STLA ) and Samsung did not immediately respond to requests for comment from MT Newswires.

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