The Biden administration expanded its efforts to lock in its climate policies Dec 2, saying that it would lend almost US$7 billion (S$9.37 billion) to help build battery factories in Indiana to supply vehicles made by Stellantis, the owner of Jeep, Chrysler, Dodge and Ram.

The financing, which was the second multibillion-dollar loan related to electric-vehicle manufacturing in a week, is part of the administration’s efforts to create domestic supplies of batteries.

President-elect Donald Trump has vowed to reverse Biden administration policies aimed at promoting electric-vehicle manufacturing. Transportation is the biggest source of greenhouse gases in the United States.

Last week, the Department of Energy said it would lend US$6 billion to help Rivian build an electric-car factory in Georgia. Rivian, a relatively new company that makes only electric vehicles, plans to produce sport utility vehicles and hatchbacks at the factory, in Social Circle, near Atlanta.

The loan announced Dec 2, for US$6.85 billion not including interest, will be used to finance two battery plants in Kokomo, Indiana, that are being built by StarPlus Energy, a joint venture between Stellantis and Samsung SDI, a South Korean company.

The factories will employ 2,800 people once they are up and running and 3,200 workers during construction. The plants will be capable of making batteries for 670,000 vehicles a year, the Department of Energy said.

The loan agreements for StarPlus and Rivian will be binding once the government and the companies sign final contracts, which is expected to take place before Mr Trump’s inauguration in January.

As has often been the case with the Biden administration’s clean energy funds, both projects are in congressional districts represented by Republicans, who have generally been opposed ...