2,500 million for electric batteries

0
35

A joint venture between General Motors and South Korean battery company LG Energy Solution is set to receive a $2.5 billion loan from the US Department of Energy to build electric vehicle battery factories in three states.

The Energy Department said it made the initial commitment to lend the money to Ultium Cells LLC, a joint venture between GM and LG. The loan will help Ultium finance three lithium-ion battery plants in Michigan, Ohio and Tennessee, strengthening the Joe Biden administration’s efforts to promote electric vehicles and reduce reliance on China for critical components.

The plants will strengthen the country’s energy independence and support Biden’s goal of having electric vehicles account for half of all auto sales in the country by 2030, Energy Secretary Jennifer Granholm said.

The plants are expected to create up to 6,000 jobs under construction and 5,100 in operations once completed. Ultium Cells is just weeks away from opening its first battery plant in Lordstown, Ohio, which it says will help meet strong demand for electric cars.

Ultium will supply batteries to GM, which is working to convert its fleet entirely to electric cars by 2035.

The loan would be the first dedicated exclusively to lithium-ion battery production under the State-of-the-Art Vehicle Manufacturing program, which provides loans to U.S. producers of light vehicles, qualified components and fuel-saving materials, he said. the Department of Energy.

Jigar Shah, director of the department’s Loan Office, said the loan to Ultium “will help create a national supply chain to meet the growing demand for electric vehicles” and “create thousands of good-paying jobs in three states, while that enables improvements on existing lithium-ion battery technologies.”

Comments are closed.