The U.S. Department of Energy said Monday it had finalized a $2.5 billion loan to help a joint venture between General Motors Co. and LG Energy Solutions pay for three new lithium-ion battery cell manufacturing facilities.
Reuters first reported last July that the government’s Advanced Technology Vehicle Manufacturing (ATVM) loan program is planning to issue a loan to Ultium Cells Ltd.
The loan will help build new lithium-ion production 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 is scheduled to visit Michigan on Monday with Undersecretary of Labor Julie Suh, Michigan Governor Gretchen Whitmer, United Automobile Manufacturers Association President Ray Curry and other officials, automakers and electronics manufacturers. battery companies. They will discuss strategies for recruiting and retaining a diverse and skilled battery workforce and the Biden administration’s battery workforce initiatives.
Last week, workers at the $2.3 billion Ultium plant in Ohio voted to join the UAW, a victory for unions seeking to organize the growing EV supply chain.
GM and LG Energy are planning to build their fourth US battery plant in Indiana. They are building a $2.6 billion plant in Michigan that will open in 2024. This month, Ultium said it would add another $275 million to its investment in a $2.3 billion plant in Tennessee.
President Joe Biden has set a goal of 50 percent of the U.S. auto industry being electric or plug-in hybrids by 2030. GM plans to produce 1 million electric vehicles in North America by 2025 and to end sales of gasoline-powered vehicles by 2035.
The $430 billion Inflation Reduction Act (IRA) passed in August included another $3 billion for ATVM loan spending, heavy-duty vehicles, marine vessels, aircraft and other vehicles.
According to the Department of Energy, the $3 billion before the Ultium loan is a total of $55.1 billion under ATVM.
The ATVM loan program closed a $102.1 million loan to Syrah Technologies LLC in July for the expansion of a key battery component manufacturing facility. This is the first new loan under the ATVM program since 2011.
The program has previously supported Ford Motor, Tesla and Nissan Motor projects. GM applied for ATVM loans totaling $14.4 billion in 2009, but withdrew the request in 2011.
(Reporting by David Shepardson. Editing by Gerry Doyle)