In a move seen as a last-minute push to support clean energy initiatives, the Department of Energy (DOE) has approved a staggering $14.7 billion in loans for various projects focused on manufacturing clean energy solutions in the United States. This development comes just ahead of President-Elect Donald Trump's inauguration, who has vowed to cancel any unspent federal dollars allocated under President Joe Biden's Inflation Reduction Act (IRA).

The IRA, a bipartisan climate law, has been instrumental in spurring private investment in the clean energy sector. Automakers and battery manufacturers, in particular, have collectively invested or promised to invest around $112 billion in building domestic cell and module manufacturing plants for electric vehicles. Notably, these factories have largely benefited Republican-led communities.

The DOE's loan approvals come from two programs – the Advanced Technology Vehicles Manufacturing (ATVM) loan program and the Title 17 Clean Energy Financing Program – which were revived and expanded, respectively, under the IRA. The ATVM program, which went dormant under Trump's first administration, had previously provided a crucial $465 million loan to Tesla in 2009, helping the electric vehicle maker avoid bankruptcy.

A joint venture between General Motors and LG Energy Solution was the first to receive a $2.5 billion loan under the ATVM program in 2022, under Biden's administration. One of the conditions attached to these loans is that borrowers must "meaningfully engage with community and labor stakeholders to create good-paying jobs and improve the well-being of the local community and workers."

Over the past week, the DOE has approved or conditionally approved four loans totaling roughly $14.7 billion. Some of the biggest recent recipients include Eos Energy Enterprises, Stellantis and Samsung (StarPlus Energy), Sunwealth, and Rivian.

Eos Energy Enterprises received a $303.5 million loan guarantee to finance the construction of two production lines that promise to produce enough stationary batteries per year to power the electricity needs of 130,000 homes. The project is expected to create up to 1,000 jobs.

Stellantis and Samsung's joint venture, StarPlus Energy, secured a conditional commitment for a loan of up to $7.54 billion to finance the construction of two lithium-ion battery cell and module factories in Kokomo, Indiana. The project is expected to create about 3,200 construction jobs and 2,800 operations jobs at the plants, with a production capacity of 67 GWh of battery capacity annually, enough to power 670,000 vehicles.

Clean energy investment firm Sunwealth scored a loan guarantee of up to $289.7 million for its Project Polo, which aims to deploy up to 1,000 solar photovoltaic and battery energy storage systems to commercial and industrial facilities across up to 27 states. Project Polo is expected to create 3,700 jobs, including 1,900 solar and storage installation jobs and 1,700 operations and maintenance jobs.

Rivian, the electric vehicle manufacturer, secured a conditional commitment for a $6.6 billion loan to help it restart construction on its massive EV factory in Georgia. Rivian expects to begin operations at the factory in 2028, employing 7,500 people by 2030.

The DOE's loan approvals are seen as a significant boost to the clean energy sector, which has been a key focus area for the Biden administration. While Trump's inauguration may bring uncertainty to the sector, these loans demonstrate the government's commitment to supporting domestic clean energy production and job creation.

As the clean energy landscape continues to evolve, it remains to be seen how Trump's administration will approach these initiatives and whether they will continue to support the growth of the sector. One thing is certain, however – the DOE's loan approvals have set the stage for a significant expansion of clean energy production in the United States, with far-reaching implications for the environment, the economy, and the country's energy independence.