Posted: 10:18 AM PST · December 13, 2024

Image Credits: U.S. Department of Energy

EVgo Secures $1.25B Loan Amid Biden’s Rush to Approve Clean Energy Loans

Electric vehicle charging startup EVgo is the latest company to secure funds from the U.S. Department of Energy as the Biden administration races to approve clean energy loans before Donald Trump takes over.

Trump’s Threats: Canceling Unspent Funds

As reported earlier, Trump has promised to cancel any unspent funds from Biden’s bipartisan Inflation Reduction Act, including the $7,500 tax credit for new EV purchases and loans to companies onshoring the production of batteries, charging equipment, and renewable resources.

The DOE Loan Approval

The DOE Friday approved a $1.25 billion loan to EVgo to help the startup install 7,500 public chargers at 1,100 charging stations across the U.S. over the next five years. This significant investment will not only accelerate the adoption of electric vehicles but also create new job opportunities.

Job Creation and Benefits

EVgo’s project is expected to create more than 180 construction jobs and over 550 maintenance and support jobs. The loan approval comes at a crucial time, as the Biden administration aims to promote clean energy initiatives and reduce America’s reliance on fossil fuels.

Recent DOE Loan Recipients

Other recent DOE loan recipients include:

• StarPlus Energy: A battery joint venture from Stellantis and Samsung
• Rivian

Clean Energy Loans: A Priority for the Biden Administration

The Biden administration has made it clear that clean energy loans are a top priority. By approving EVgo’s $1.25 billion loan, the DOE is sending a strong signal to companies like EVgo that they are committed to supporting the transition to renewable energy.

Background on the Inflation Reduction Act

The Inflation Reduction Act was signed into law in August 2022 and aims to reduce greenhouse gas emissions by investing in clean energy technologies. The act provides tax credits for new electric vehicle purchases, loans for companies onshoring battery production, and funding for renewable resource development.

A Look Ahead: EVgo’s Plans for Expansion

With the $1.25 billion loan approved, EVgo is set to expand its network of public charging stations across the U.S. The company plans to deploy 350kW DC fast-charging equipment that can charge two cars at once, making it one of the fastest and most efficient charging systems on the market.

Conclusion

The approval of the $1.25 billion loan to EVgo marks a significant milestone in the transition to clean energy. As the Biden administration continues to push for the adoption of renewable resources, companies like EVgo are poised to benefit from the investment and create new job opportunities.