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Electric Vehicles

Will the DOE’s New $7 Billion Battery Loan Survive Trump?

On Stellantis and Samsung’s factories, a new Jaguar EV, and innovative climate finance

Will the DOE’s New $7 Billion Battery Loan Survive Trump?
Heatmap Illustration/Getty Images

Current conditions: Japan’s warmest autumn ever recorded has delayed the country’s vibrant foliage season • The east coast of Australia is bracing for a “rain bomb” • A Canadian storm system is bringing a blast of Arctic air to the Midwest and Northeast today through Thursday.

THE TOP FIVE

1. DOE to loan Stellantis and Samsung $7 billion for EV battery factories

The Biden administration yesterday approved a $7 billion conditional loan for the joint venture between Stellantis and Samsung SDI – called StarPlus Energy – to help the companies build two EV battery plants in Kokomo, Indiana. The Department of Energy estimates the projects will create 3,200 construction jobs and 2,800 operations jobs, and the finished plants will produce 67 GWh of batteries, “enough to supply approximately 670,000 vehicles annually.” The loan isn’t finalized yet, and its fate hangs in the balance as President-elect Trump’s administration may not see it through. Though as The New York Times noted, “both projects are in congressional districts represented by Republicans,” and “some of them may be unwilling to get in the way of projects that bring thousands of jobs and billions of dollars to their districts.” Just two days ago, Stellantis CEO Carlos Tavares resigned, and the company has been posting sluggish U.S. sales figures. Last week the DOE announced another conditional loan for EVs: $6.6 billion for Rivian to build its Georgia manufacturing plant.

2. Jaguar shows off electric Type 00

Jaguar has unveiled the first concept car of the company’s new all-electric era. The much-anticipated electric Type 00 (which apparently is pronounced “zero zero”) is a two-door coupe that comes in two colors: Miami pink and London blue. It will get up to 430 miles of range and charge 200 miles in 15 minutes. It will go on sale sometime in 2026 and cost at least $127,000. In its announcement, Jaguar called the car “an unmistakable, unexpected, and dramatic physical manifestation of Jaguar, as the brand continues its transformation.” The company has committed to going fully electric by 2025, and recently launched a rebrand complete with a new logo and a flashy but kind of weird ad campaign that hasn’t been entirely well received.

Jaguar

3. Barbados completes first ‘debt for climate resilience’ swap

Barbados completed a “debt for climate resilience” swap that will free up about $125 million and enable the Caribbean island to invest in water and sewage infrastructure. So-called debt for nature swaps involve a country reducing or cancelling its debts by agreeing to preserve biodiversity or nature preservation. This is apparently the first case of a country using such a transaction to build climate resilience, and others are likely to follow Barbados’ lead. “In the face of the climate crisis, this groundbreaking transaction serves as a model for vulnerable states, delivering rapid adaptation benefits for Barbados,” said Prime Minister Mia Mottley. The government will have to meet sustainability performance targets as part of the deal.

4. Report finds airlines are falling short on SAF

The aviation industry is relying on “sustainable” aviation fuel – or SAF – to help it lower its carbon footprint. But a new report finds airlines aren’t using enough of the stuff to make any meaningful difference. The report, from Brussels-based advocacy group Transport and Environment, ranks 77 major global airlines and airline groups on their use of and commitment to SAF using a points scale of 0 to 100 and found that none of them scored above 61 points, “highlighting how much progress airlines still need to make.” Most airlines failed to get above 24 points. SAF makes up about 1% of global aviation fuel use, Reuters reported. It is more expensive than fossil fuel-based kerosene and there isn’t much of it to go around. The report points to a lack of investment in SAF from oil producers. Below is a graph showing oil giants’ estimated 2023 fuel production. You can just about see the SAF if you squint.

Transport and Environment

5. Judge rejects Musk’s pay package – again

Tesla reportedly told Cybertruck workers at its factory in Austin, Texas, not to come to work today, tomorrow, or Thursday. “Given that it is a critical time for Tesla deliveries, particularly of its flagship model, the timing is suspect,” said Jameson Dow at Electrek, suggesting a sales slowdown. The company also lowered its Cybertruck leasing pricing, which might also indicate a demand slump for the electric pickup. Meanwhile, a Delaware judge yesterday rejected CEO Elon Musk’s $56 billion pay package for a second time, even after shareholders voted to reinstate it. Judge Kathaleen McCormick said the attempts to get the package approved were “creative” but “go against multiple strains of settled law.” If Tesla appeals, the case could go to the Delaware Supreme Court.

THE KICKER

About 12,000 public EV charging ports came online in the U.S. over the last three months, bringing the total in the national charging network to more than 200,000. That’s double the number recorded in 2020.

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AM Briefing

Trump’s Reactor Realism

On the solar siege, New York’s climate law, and radioactive data center

A nuclear reactor.
Heatmap Illustration/Georgia Power

Current conditions: A rain storm set to dump 2 inches of rain across Alabama, Tennessee, Georgia, and the Carolinas will quench drought-parched woodlands, tempering mounting wildfire risk • The soil on New Zealand’s North Island is facing what the national forecast called a “significant moisture deficit” after a prolonged drought • Temperatures in Odessa, Texas, are as much as 20 degrees Fahrenheit hotter than average.

THE TOP FIVE

1. Trump’s plan to build 10 new large reactors is making headway

For all its willingness to share in the hype around as-yet-unbuilt small modular reactors and microreactors, the Trump administration has long endorsed what I like to call reactor realism. By that, I mean it embraces the need to keep building more of the same kind of large-scale pressurized water reactors we know how to construct and operate while supporting the development and deployment of new technologies. In his flurry of executive orders on nuclear power last May, President Donald Trump directed the Department of Energy to “prioritize work with the nuclear energy industry to facilitate” 5 gigawatts of power uprates to existing reactors “and have 10 new large reactors with complete designs under construction by 2030.” The record $26 billion loan the agency’s in-house lender — the Loan Programs Office, recently renamed the Office of Energy Dominance Financing — gave to Southern Company this week to cover uprates will fulfill the first part of the order. Now the second part is getting real. In a scoop on Thursday, Heatmap’s Robinson Meyer reported that the Energy Department has started taking meetings with utilities and developers of what he said “would almost certainly be AP1000s, a third-generation reactor produced by Westinghouse capable of producing up to 1.1 gigawatts of electricity per unit.”

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Podcast

The Peril of Talking About Electricity Affordability

Rob sits down with Jane Flegal, an expert on all things emissions policy, to dissect the new electricity price agenda.

Power lines.
Heatmap Illustration/Getty Images

As electricity affordability has risen in the public consciousness, so too has it gone up the priority list for climate groups — although many of their proposals are merely repackaged talking points from past political cycles. But are there risks of talking about affordability so much, and could it distract us from the real issues with the power system?

Rob is joined by Jane Flegal, a senior fellow at the Searchlight Institute and the States Forum. Flegal was the former senior director for industrial emissions at the White House Office of Domestic Climate Policy, and she has worked on climate policy at Stripe. She was recently executive director of the Blue Horizons Foundation.

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Power lines.
Heatmap Illustration/Getty Images

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