U.S. Energy Department Finalizes Loan for GM Battery Venture
The U.S. Energy Department finalized a $2.5 billion loan to a joint venture of General Motors Co. and LG Energy Solution for three lithium-ion battery cell manufacturing facilities.
The U.S. Energy Department finalized a $2.5 billion loan to a joint venture of General Motors Co. and LG Energy Solution for three lithium-ion battery cell manufacturing facilities.
IMAGE: Getty Images
The U.S. Energy Department has finalized a $2.5 billion low-cost loan to a joint venture of General Motors Co. and LG Energy Solution to fund three new lithium-ion battery cell manufacturing facilities.
The planned loan to Ultium Cells LLC from the government's Advanced Technology Vehicles Manufacturing (ATVM) loan program will help finance the construction of the new manufacturing facilities in Ohio, Tennessee and Michigan. The facilities are expected to support 6,000 construction jobs and 5,100 operations jobs.
Workers at the $2.3 billion Ultium plant in Ohio recently voted to join the UAW, which is seeking to organize the EV supply chain.
A fourth U.S. battery plant site in Indiana is being considered by the joint venture partners. Work on the $2.6 billion plant in Michigan has already begun. This plant will open 2024. Ultium also recently announed plans to boost its investment in a $2.3 billion Tennessee plant by $275 million.
The Biden Administration approved a $430 billion Inflation Reduction Act (IRA) in August. The legislation included $3 billion for ATVM loan costs and expanded uses to larger vehicles, maritime vessels, aviation,
and other transportation modes.
The Energy Department said the $3 billion will provide an estimated $40 billion in additional loan authority for a total estimated available authority under ATVM of about $55.1 billion before the Ultium loan.
The ATVM loan program also closed on a $102.1 million loan to Syrah Technologies LLC in July. These funds will fund the expansion of a facility producing a key battery component.
The program has supported Ford Motor, Tesla and Nissan Motor projects in the past. GM had applied for $14.4 billion in ATVM loans in 2009 but withdrew the application in 2011.
Originally posted on Auto Dealer Today
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