U.S. to provide 10 trillion won loan to Samsung SDI battery joint venture

The U.S. government has decided to provide 10.5 trillion won in loans to Starplus Energy, a battery joint venture between Samsung SDI and Stellantis.

The U.S. Department of Energy says it has decided to provide such conditional support as part of the Biden administration's "invest in America" policy.

The loan is intended to build Starplus Energy's lithium-ion battery and module plant in Indiana.

The Department of Energy explained that when the plant is completed, 670,000 batteries of electric vehicles will be produced annually.

Batteries produced at the new plant will be sold to Stellantis for use in electric vehicles in North America, the Energy Department said, allowing the U.S. to remain a global leader in the fast-expanding electric vehicle industry.

It also said the project would increase electric vehicle battery manufacturing capacity in North America, reducing U.S. reliance on hostile countries such as China.

Earlier last month, the U.S. Department of Energy announced 9.2 trillion won worth of loans to its electric vehicle maker Rivian.

However, the second Trump administration, which will take office in January next year, is negative about supporting electric vehicles, so it is unclear whether the application process will be completed within the Biden administration or whether the new government will take over and execute it.