U.S. Department of Energy Greenlights Energy Innovator NeoVolta's $250M Loan Request: Phase One

2024-12-02

NeoVolta (NASDAQ: NEOV), a trailblazer in the energy storage sector, is pleased to announce completion and approval of phase one in its $250M loan proposal, under the U.S. Department of Energy's Title 17 Loan Program (LPO), clearing the path for the commencement of phase two: technical due diligence.

 

In line with national content mandates for commercial-grade Battery Electric Storage Systems (BESS) and various other components, NeoVolta is geared to set up a bleeding-edge manufacturing hub capable of housing over 150 diligently paid professionals.

 

Furthermore, NeoVolta aims to lay the groundwork for region-specific service and support centers, keeping pace with the escalating demand across the country. The enterprise intends to streamline the production pipeline, focusing chiefly on its proprietary battery cell technology in both cylindrical and prismatic forms. A section of this yield will be designated for sales to third parties, inviting more manufacturers to contribute to homegrown content. Diversification plans also include branching out into the production and assembly of inverters.

 

A stipulation of national content for the entire industry was cemented in the bipartisan Inflation Reduction Act (IRA) of 2022. President-elect Trump has sustained his advocacy for American manufacturing throughout his pre-presidential briefings. "Bolstering U.S. manufacturing and enhancing essential domestic content are bipartisan issues that endure beyond national elections, and it's an honor to contribute to this national campaign," said NeoVolta's CEO, Ardes Johnson.

 

Organizations from 23 states have proposed finance packages to NeoVolta for the founding of a headquarters, a manufacturing locale, and regional offices. These proposals present a gamut of grants for capital expenditure, workforce growth, relocation costs, expansion expenses, and off-take agreements with state utilities. The firm is currently sifting through each proposition before a final decision is made.

 

"In light of the revitalized emphasis on U.S. manufacturing and components, dovetailed with the call for grid resilience and stability, NeoVolta plans to launch and broaden U.S. manufacturing while wrapping up design and production of our commercial-grade merchandise," Johnson stated. "We appreciate President-elect's numerous endorsements of solar energy throughout the campaign and eagerly anticipate offering American-made solar tech storage solutions that will fortify our grid and drive us closer to energy autonomy."

 

As part of the Title 17 Clean Energy Financing Program, applicants must establish the feasibility and financial potential to support clean energy distribution infrastructures and investments that lead to reductions in greenhouse gas emissions and air pollution. Initiated by the 2005 Energy Policy Act, the program has undergone several revisions, the most recent ones being the Infrastructure Investment and Jobs Act of 2021 and the Inflation Reduction Act of 2022.

 

NeoVolta is vying for the DOE's "Innovative Energy" project status, set to minimize greenhouse gas emissions through the design, creation, production, and sale of state-of-the-art commercial Battery Energy Storage Solutions built on lithium iron, on a national scale. DOE LPOs are federally guaranteed with an attractive minimum interest rate of just 0.0375%. According to the DOE, the application process takes roughly 12 months end to end. However, the project must pass the financial and conceptual feasibility test in phase one to move forward.

 

Confident in its proposal to the DOE, Johnson stated, "we are well-poised to demonstrate technical feasibility along with meeting other due diligence criteria."

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