The Department of Energy (DOE) has been on a loan-approval spree in the lead-up to President-elect Donald Trump's inauguration, with a focus on companies manufacturing clean energy solutions on U.S. soil. In the past couple of weeks, the DOE has approved or conditionally approved five loans totaling roughly $15.95 billion, with recipients including EVgo, Eos Energy Enterprises, Stellantis and Samsung, Sunwealth, and Rivian.

These loans come from two DOE loan programs – the Advanced Technology Vehicles Manufacturing (ATVM) loan program and the Title 17 Clean Energy Financing Program – that were revived and expanded, respectively, under the Inflation Reduction Act (IRA). The IRA, a bipartisan climate law, allocated billions to building a domestic supply chain for clean energy, which has spurred a flurry of private investment. Automakers and battery manufacturers have collectively invested or promised to invest around $112 billion in building domestic cell and module manufacturing plants for electric vehicles, largely benefiting Republican-led communities.

The ATVM program, which went dormant under Trump's first administration, once provided a much-needed $465 million loan to Tesla in 2009, helping to save the EV maker from one of several near-death experiences. 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.

A condition of these loans is that the borrowers "meaningfully engage with community and labor stakeholders to create good-paying jobs and improve the well-being of the local community and workers." The approved loans are expected to create thousands of jobs across the country.

One of the biggest recent recipients is EVgo, which received a $1.25 billion loan guarantee to aid the installment of 7,500 public chargers at 1,100 charging stations across the U.S. over the next five years. The first deployments will include 350kW DC fast charging equipment that can charge two cars at once, and the chargers will be equipped with CCS and NACS ports.

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, received 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. If finalized, the loan will create about 3,200 construction jobs and 2,800 operations jobs at the plants. At peak production, the factories are expected to produce 67 GWh of battery capacity, which is enough to power 670,000 vehicles annually.

Sunwealth, a clean energy investment firm, scored a loan guarantee of up to $289.7 million for its Project Polo, which will finance the deployment of 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, an 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, and it will employ 7,500 people by 2030.

These loan approvals come as President-elect Trump has promised to cancel any unspent federal dollars under the IRA, which could impact the future of clean energy projects in the U.S. However, the DOE's efforts to support domestic clean energy manufacturing and infrastructure development are expected to have a lasting impact on the industry.

The approval of these loans demonstrates the Biden administration's commitment to promoting clean energy solutions and reducing the country's reliance on fossil fuels. As the U.S. continues to transition towards a more sustainable energy future, these investments will play a critical role in driving innovation and job creation.