Samsung SDI to Provide $1.05B Loan to Stellantis Venture
Samsung SDI announced plans to lend 1.6 trillion won ($1.05 billion) to StarPlus Energy, its joint venture with Stellantis. According to a regulatory filing reported by Reuters, the funding will support capital investment at the Indiana-based manufacturing facility.
Moreover, the investment reflects a broader shift in production priorities at the Kokomo site. The facility has already started redirecting part of its operations from electric vehicle batteries toward energy storage systems. As a result, the loan aims to strengthen infrastructure and support this evolving strategy.
Transition Toward Energy Storage Systems
At a pivotal moment for the joint venture, the Kokomo facility began converting some production lines in late 2025. Consequently, the site now includes an operational NCA battery line dedicated to energy storage systems, while an EV battery line for Stellantis vehicles launched earlier.
Looking ahead, Samsung SDI plans to begin producing LFP batteries for energy storage in the second half of 2026. In addition, the company recently signed a three-year supply agreement with L&F worth approximately 1.6 trillion won for LFP cathode materials. The agreement also includes an option to extend for three more years.
Furthermore, the deal, which begins in 2027, aims to reduce reliance on Chinese-sourced materials. Therefore, the company is positioning itself to compete more effectively in a market historically dominated by Chinese producers.
Uncertainty Surrounds Partnership Future
However, the financing arrives amid uncertainty about the future of the joint venture. Earlier, Bloomberg News reported that Stellantis was exploring options to exit its stake. This move followed more than $26.5 billion in asset writedowns tied to its electric-drive and software programs.
At the time, Stellantis said it was “continuing collaborative discussions with Samsung on the future of our StarPlus Energy joint venture”.
Nevertheless, Samsung SDI’s decision to provide significant funding indicates continued commitment to the project. Meanwhile, the Kokomo plant previously secured a $7.54 billion loan from the U.S. Department of Energy in December 2024. This funding supports the development of up to two lithium-ion battery factories with a combined capacity of 67 gigawatt hours.
In parallel, Samsung SDI has expanded its presence in the U.S. energy storage sector. Recently, the company secured a separate 1.5 trillion won ($1 billion) four-year supply deal with an American energy company. Consequently, these developments highlight a growing focus on energy storage as a key area of future growth.
