The U.S. Department of Energy (DOE) has approved a conditional loan of up to $7.54 billion to support the construction of two electric vehicle (EV) battery plants in Kokomo, Indiana, by a joint venture between Stellantis and Samsung SDI. This loan is part of the DOE’s Advanced Technology Vehicles Manufacturing (ATVM) program, which has been revitalized under President Biden to boost the U.S. EV manufacturing industry.

The two plants will produce enough batteries annually to power around 670,000 EVs, which is a significant step toward increasing domestic EV production and reducing the U.S.’s reliance on foreign sources for critical materials, like those from China. The project is expected to create 3,200 construction jobs and up to 2,800 long-term factory roles, with additional employment expected at a nearby supplier park.

This loan marks one of the largest in the history of the DOE’s Loan Programs Office and reflects the ongoing push for clean energy and sustainable transportation. However, the loan’s final approval is not guaranteed—especially given the potential shift in policy under a possible second term for Donald Trump. Trump has previously indicated his opposition to much of Biden’s green energy agenda, including funding for initiatives like the ATVM program.

Stellantis, which owns popular brands such as Jeep, Dodge, and Chrysler, is under significant pressure as it tries to catch up with competitors in the EV space. The company recently announced that its CEO Carlos Tavares will step down amid a decline in global sales. Despite these challenges, the Stellantis-Samsung project is seen as a crucial move to secure a stronger foothold in the growing EV market, helping the U.S. maintain leadership in the global transition to electric mobility.