Biden Administration Shoves $7 Billion More Toward the EV Industry

The frenzy of Department of Energy generosity continues in the waning days of the Biden administration, as the Department’s Loan Program Office Announced billions more in conditional funding for another major new electric vehicle-related manufacturing facility.

After $6.57 billion was promised last week (both loans are not yet finalized) to EV maker Rivian for a new plant in Georgia, now the LPO has announced another $6.85 billion, before interest, to a joint venture of Stellantis and Samsung SDI called StarPlus Energy. This time the money is going not to build the cars themselves, but to the batteries the EVs all need: a factory in Kokomo, Indiana, will eventually be capable of producing batteries for 670,000 vehicles per year.

Once again, this means climate-friendly dollars are flowing to a climate-unfriendly spot: Indiana voted for Trump last month by almost 20 points, and the incumbent Republican House represenative Jim Baird won by 35. StarPlus says construction for the battery facility will employ up to 3,200 people, and 2,800 will work there once it is fully operational. Again, these are tough numbers to say no to — as is the LPO’s claim that expanding this sort of manufacturing will reduce U.S. dependence on Chinese imports — even with a Drill and Spill administration incoming.

The relative flurry of these big-dollar loan announcements shows how generally unprepared various parts of government were for the seismic shift that will arrive in January. They probably assumed this sort of program, and other attempts at long-term emissions reductions and energy transitions, could just sort of meander along through the next administration like nothing had changed. Instead they are trying to shove ten-digit numbers out the door on their way to the curb.