Exclusive: U.S. Energy Department set to loan GM battery joint venture $2.5 billion



WASHINGTON (Reuters) – The U.S. Energy Department on Monday plans to announce it intends 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, officials told Reuters.

The conditional commitment for the loan to Ultium Cells LLC for facilities in Ohio, Tennessee, and Michigan is expected to 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 program previously provided loans to Tesla Inc, Ford Motor and Nissan.

This would be the Energy Department’s first loan for a battery cell manufacturing project under the vehicle program.

President Joe Biden has set a goal of 50% of U.S. auto production by 2030 being electric or plug-in electric hybrid vehicles.

“We have to have vehicle manufacturing capacity but also battery manufacturing capacity,” said Jigar Shah, who directs the Energy Department loan program office, in a Reuters interview. “This project provides one of the newest additions to battery manufacturing scale in this country.”

Ultium said in a statement the “facilities will create more than 5,000 new high-tech jobs in the United States. We are grateful for the consideration and look forward to working with the Department of Energy on next steps.”

(Reporting by David Shepardson; Editing by Mark Potter)

Read original article here

Denial of responsibility! Genx Newz is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – [email protected]. The content will be deleted within 24 hours.
Leave A Reply

Your email address will not be published.