Progress on another US Department of Energy (DOE) loan for the battery sector has been announced, this time by NeoVolta, the third in the space of a week since the US election.
The Nasdaq-listed residential and C&I energy storage provider has completed phase one of its loan application for US$250 million from the DOE Loan Programs Office’s (LPO) Clean Energy Financing Program and has been approved to proceed with phase two technical due diligence.
The company is looking to establish a manufacturing facility to meet domestic content requirements for battery energy storage systems (BESS) under the Inflation Reduction Act (IRA), it said yesterday (13 November).
The IRA is the outgoing Biden-Harris administration’s flagship support package for the US clean energy industry, and Trump’s election win has raised some questions over its future, though many agree its main policies have bipartisan support.
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NeoVolta also said it will ‘vertically integrate the manufacturing supply chain, primarily producing its battery cell technology, both cylindrical and prismatic’. Some of that will go to third parties, enabling more manufacturers to participate with domestic content, it added.
However, US$250 million is a low figure for a battery cell manufacturing facility. If the loan is intended for a cell facility, it would presumably be augmented with other financing sources. NeoVolta also wants to expand into inverter production and assembly, it said.
“Strengthening US manufacturing and increasing vital domestic content is a bi-partisan issue that transcends national elections, and we are proud to be part of this national effort,” stated Ardes Johnson, CEO of NeoVolta.
“We are pleased to hear the President-elect’s multiple pro-solar energy statements throughout the campaign and look forward to providing American made solar technology storage solutions that will strengthen our grid and efforts to achieve energy independence.”
There have been a few announcements around DOE LPO loans for the clean energy industry in the week since Trump was elected, potentially signifying a rush to get deals done before the department’s direction changes. Zinc battery firm Eos said it expects to successfully complete its loan application by the end of 2024, revealed on the day of voting, while recycler Li-Cycle revealed a finalisation of its one a few days later.
