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The Department of Energy (DOE) is at risk of approving loans in preparation for the inauguration of President-elect Donald Trump, and the winners are all companies that develop clean energy solutions on US soil.
Companies like Stellantis and Samsung, Rivian, and more recently, EVgo.
Trump has promised ban any money not spent under President Joe Biden’s Inflation Reduction Act (IRA), a climate law that provided billions to build domestic energy systems. The IRA also encouraged many private investments. In particular, automakers and battery manufacturers have put all the money together or promised to invest in a round $112 billion in the construction of home cells and modules for the production of electric vehicles. Those industries have greatly benefited Republican-led states.
The new loans come from two DOE loan programs – the Advanced Technology Vehicles Manufacturing (ATVM) loan program and the Title 17 Clean Energy Financing Program – which the IRA revived and expanded, respectively.
The ATVM program in particular, which was phased out under Trump, provided a much-needed $465 million loan to Tesla in 2009, helping save the EV maker from one of several near-death experiences. It declined under the Trump administration.
The partnership between General Motors and LG Energy Solution was the first to receive a $2.5 billion in debt under the ATVM program in 2022 under the leadership of Biden.
The nature of these loans is that lenders “connect with communities and workers to create good-wage jobs and improve the lives of the community and workers.”
In the past few weeks, the DOE has approved or approved five loans totaling $15.95 billion. We’re keeping track of where Biden’s DoE loan money is going. Here are some of the major recipients recently.
EVgo
On December 13, the DOE approved a A $1.25 billion loan guarantee ($1.05 billion of principal and $193 million of interest) for the launch of the electric vehicle EVgo. The funds will be used to support the installation of 7,500 chargers at 1,100 locations in the US over the next five years. The first shipment will include a 350kW DC charger that can charge two vehicles at once, and the chargers will have ports for the Combined Charging System and the North American Charging System.
Company proposal Eos Energy Enterprises
On December 3, a The DOE closed the loan for $303.5 million guarantee ($277.5 million in principal and $26 million in interest) to Eos Energy Enterprises to finance the construction of two production lines that promise to produce enough stationary batteries annually to power 130,000 homes.
The project is expected to create up to 1,000 jobs.
Stellantis and Samsung (StarPlus Energy)
On December 2, the DOE approved a conditional commitment on a loan of up to $7.54 billion ($6.85 billion principal, $688 in interest). StarPlus Energy Company Profileand agreement made by automaker Stellantis and South Korean battery maker Samsung SDI. If completed, the loan will finance two lithium-ion battery cell and module factories that are being built in Kokomo, Indiana.
The project is expected to create approximately 3,200 construction jobs and 2,800 manufacturing jobs. At full production, the plant is expected to produce 67 GWh of battery power, which is enough to power 670,000 cars a year.
The sun
Sunwealth Energy Refinery on November 25 acquired a loan guarantee to $289.7 million for its Project Polo. Once completed, the loan will finance the deployment of 1,000 solar photovoltaic and battery storage systems to commercial and industrial facilities in up to 27 countries.
Project Polo is expected to create 3,700 jobs, including 1,900 solar installation and storage jobs and 1,700 service and maintenance jobs.
Rivian
Rivian on November 25 found a proper dedication on a $6.6 billion loan to help restart construction of its largest EV factory in Georgia. Rivian expects to begin operations at the plant in 2028, and it will employ 7,500 people by 2030.
