Home Automotive U.S. finalizes $2.5 billion loan to GM, LG battery joint venture

U.S. finalizes $2.5 billion loan to GM, LG battery joint venture

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WASHINGTON – The U.S. Department of Energy announced Monday that it has finalized a $2.5 billion low-cost loan to a joint venture between General Motors and LG Energy Solutions. battery Cell manufacturing facility.

Reuters first reported a planned loan to Ultium Cells LLC from the government’s Advanced Technology Vehicles Manufacturing (ATVM) loan program in July.

The loan will finance the construction of new lithium-ion manufacturing facilities in Ohio, Tennessee and Michigan, supporting 6,000 construction jobs and 5,100 operating jobs at three plants.

U.S. Energy Secretary Jennifer Granholm joins Deputy Labor Secretary Julie Su, Michigan Gov. Gretchen Whitmer, United Auto Workers (UAW) President Ray Curry, and other officials, automakers and EVs on Monday. will travel to Michigan to promote the closing of the Altium loan. battery company. 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, which seeks to organize the growing EV supply chain.

GM and LG Energy are considering building a fourth US battery plant in Indiana. They’re building his $2.6 billion factory in Michigan, which is set to go live in 2024. This month, Ultium announced an additional $275 million investment in its $2.3 billion Tennessee plant.

President Joe Biden has set a goal of 50% of U.S. car production being electric or plug-in electric hybrids by 2030. GM plans to build 1 million of his EVs in North America by 2025 and stop selling petrol cars by 2035.

The $430 billion Inflation Relief Act (IRA), approved in August, includes an additional $3 billion in ATVM loan costs, which could be used for heavy vehicles, sea vessels, aviation, and other modes of transport. Enlarged.

The Department of Energy said the $3 billion would provide an estimated $40 billion in additional lending authority to total available authority under the ATVM of about $55.1 billion prior to the Ultium loan.

The ATVM Financing Program in July completed a $102.1 million loan to Syrah Technologies LLC for the expansion of a facility that produces key battery components. This was the first new loan committed from the ATVM program since 2011.

The program has previously supported projects for Ford Motor, Tesla and Nissan. GM applied for his ATVM loan totaling $14.4 billion in 2009, but withdrew the application in 2011.

(Reporting by David Shepardson; Editing by Gerry Doyle)

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