U.S. Energy Department to Loan $2.5 Billion to GM Joint Battery Venture
The money will help a joint venture of General Motors Co. and LG Energy Solution finance the construction of new lithium-ion battery cell manufacturing facilities.
Battery manufacturing capacity is key in the U.S. transition to EVs.
Creative Commons
The U.S. Energy Department has announced its intent to loan a joint venture of General Motors Co. and LG Energy Solution $2.5 billion to help finance construction of new lithium-ion battery cell manufacturing facilities.
The conditional commitment for the loan to Ultium Cells LLC will close in the coming months and comes from the government's Advanced Technology Vehicles Manufacturing loan program, which has not funded a new loan since 2010. The money will fund facilities in Ohio, Tennessee, and Michigan.
Previously, the program provided loans to Tesla Inc, Ford Motor Co. and Nissan.
But this loan marks the Energy Department's first loan for a battery cell manufacturing project.
"We have to have vehicle manufacturing capacity but also battery manufacturing capacity. This project provides one of the newest additions to battery manufacturing scale in this country."" said Jigar Shah, who directs the Energy Department loan program office, in a Reuters interview. The capacity will help meet the Biden Administration’s goal of 50% of U.S. auto production by 2030 being electric or plug-in electric hybrid vehicles.
Ultium noted in a statement that the facilities would create more than 5,000 new high-tech jobs in the U.S.
Originally posted on Auto Dealer Today
More Showroom
California Sees Quarterly Gains
California’s new-vehicle market saw a boost in hybrids in the third quarter and its first overall quarterly market gain of the year.
Read More →
New-Vehicle Prices Stay Put
Affordability pressures and model availability shaped new-vehicle sales in September, according to an analysis by Kelley Blue Book.
Read More →
EV Buyer Consideration Shifts
What drives American consumers to purchase an electric vehicle is shifting as the question moves away from Should I?' to 'Which features and experience do I want to have?'
Read More →
Year-to-Date Auto Sales Holding Their Own
A forecast through August shows that automakers have shifted strategies to keep deliveries and revenues up despite tariffs and other economic challenges.
Read More →
Slow to Robo
Ten years of polling consumers shows autonomous vehicles’ profiles have risen considerably, but even more people now want at least some level of control if they go that route.
Read More →
Dealers a Little Down
A third-quarter Cox Automotive survey finds them in a mixed mood, bummed by fallen customer traffic but encouraged by better profits, costs and EV interest.
Read More →
European EV Sales Skyrocket
The EV market on the continent held strong in July with almost 25% of new-car sales being fully electric units, a stark contrast to the U.S., where EV sales declined about 42%.
Read More →
Mitsubishi Unveils U.S. Plan
The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.
Read More →
Used Lots Getting the Business
Many consumers are seeking out the units to save money, and the demand – higher in July than normal – is keeping supply limited and prices up.
Read More →
Used Market Stabilizes
The Carfax Used Car Index noted a major drop in used-vehicle price increases in July after several months of hikes.
Read More →