Biden Admin Grants $10.88B for EV Batteries and Charging Growth

In a landmark announcement under the Biden-Harris Administration's Investing in America agenda, the US Department of Energy’s (DOE) Loan Programs Office (LPO) has approved two significant loans to propel the electric vehicle (EV) transition: a $9.63 billion loan to BlueOval SK (BOSK) and a $1.25 billion loan guarantee to EVgo. These initiatives aim to strengthen the domestic EV battery supply chain, expand public charging infrastructure, and create thousands of high-quality jobs.

$9.63 billion loan to BlueOval SK

BlueOval SK, a joint venture between Ford Motor Company and SK On, will use the DOE loan to build three state-of-the-art battery manufacturing plants in Tennessee and Kentucky. These facilities, which will produce batteries for Ford and Lincoln EVs, are expected to collectively deliver over 120 gigawatt hours of production capacity annually.

This project represents the largest loan ever granted under the DOE’s Advanced Technology Vehicles Manufacturing (ATVM) Program. The facilities have already created over 5,000 construction jobs and are set to employ 7,500 workers once operational. Additionally, BOSK has partnered with local technical colleges in Tennessee and Kentucky to train workers for these roles, ensuring that the community benefits from new economic opportunities.

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Expanding domestic EV battery manufacturing is critical to reducing dependence on foreign supply chains, including from countries like China. It also aligns with President Biden's goal to make 50% of new vehicles sold by 2030 zero-emission and to reinforce the US as a leader in clean transportation technologies.

EVgo charging station in Georgia. Courtesy of EVgo Services LLC.

$1.25 billion loan guarantee to EVgo

EVgo, a public EV charging network, will leverage the $1.25 billion DOE loan guarantee to deploy 7,500 DC fast chargers across the US. These chargers, located at approximately 1,100 stations in states like New York, Texas, and California, will cater to the rapidly growing EV market.

The chargers will feature technology, such as dynamic power sharing and Autocharge+—a payment system that allows users to initiate charging without a credit card or phone after they enroll—enabling faster and more efficient charging. Nearly half of the new chargers will be installed in disadvantaged or low-income communities—as identified by the Climate and Economic Justice Screening Tool—advancing equitable access to EV infrastructure. Through this initiative, EVgo plans to create over 180 construction jobs and 550 maintenance roles.

This expansion supports the DOE’s broader efforts to develop a reliable, nationwide EV charging network, complementing the growing number of electrified vehicles in the market. With over 204,000 public chargers already available, EVgo’s rollout has the potential to significantly enhance access, particularly for residents of multi-family housing who lack home-charging options.

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Transitioning policies amid political change

The $9.63 billion loan to BlueOval SK and the $1.25 billion loan guarantee to EVgo highlight the Biden Administration's focus on accelerating the clean energy transition. However, these initiatives face an uncertain future as it is very likely that the incoming Trump Administration is expected to prioritize traditional energy sectors and roll back federal support for renewable energy and EV infrastructure.

The Trump Administration has historically emphasized oil and gas development, criticized EV incentives, and questioned climate-focused policies. While DOE loans are legally binding and the projects will likely proceed, reduced regulatory and financial support could hinder further expansions or slow complementary efforts, such as federal tax incentives for EV adoption.

This shift in priorities underscores the fragility of long-term clean energy investments tied to political cycles. The differing approaches to energy policy may create challenges for maintaining momentum in the domestic EV supply chain and achieving broader climate goals established under the Biden Administration.

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