US completes $2.5 billion loan to GM and LG battery joint venture
The U.S. Department of Energy said Monday it had finalized a $2.5 billion low-cost loan to a joint venture of General Motors Co and LG Energy Solution to help pay for three new cell manufacturing facilities. lithium ion battery.
The loan will help fund the construction of new lithium-ion manufacturing facilities in Ohio, Tennessee and Michigan, supporting 6,000 construction jobs and 5,100 operations jobs at the three plants.
U.S. Energy Secretary Jennifer Granholm plans to tout the Ultium loan close during a visit to Michigan on Monday with Deputy Labor Department Secretary Julie Su, Michigan Governor Gretchen Whitmer, United Auto Chairman Workers (UAW) Ray Curry and other officials, automakers and electric vehicles. They will discuss strategies for recruiting and retaining a diverse and skilled battery workforce, and the Biden administration’s Battery Workforce Initiative.
Last week, workers at the $2.3 billion Ultium plant in Ohio voted to join the UAW, a victory for the union, which seeks to organize the growing electric vehicle supply chain.
GM and LG Energy are considering a site in Indiana for a fourth US battery plant. They are building a $2.6 billion factory in Michigan, which is expected to open in 2024. This month, Ultium announced that it would increase its investment in a Tennessee factory by 2 additional $275 million. .3 billion.
President Joe Biden has set a goal that 50% of US auto production by 2030 will be electric or plug-in hybrid electric vehicles. GM plans to build 1 million electric vehicles in North America by 2025 and stop selling gas-powered vehicles by 2035.
The $430 billion Inflation Reduction Act (IRA) approved in August included an additional $3 billion for ATVM lending costs and expanded uses for larger vehicles, marine vessels, aviation and to other modes of transport.
The Department of Energy said the $3 billion would provide about $40 billion in additional lending authority for an estimated total available authority under ATVM of about $55.1 billion before the Ultium loan.
The ATVM loan program in July closed a $102.1 million loan to Syrah Technologies LLC for the expansion of a facility producing a key component for batteries. This was the first new loan finalized from the ATVM program since 2011.
The program previously supported projects from Ford Motor, Tesla and Nissan Motor. GM applied for ATVM loans totaling $14.4 billion in 2009, but withdrew the application in 2011.
