According to Reports, On Monday, the U.S. Energy Department declared its intention to lend $2.5 billion to a partnership between General Motors Co. and LG Energy Solution to assist in financing the building of new lithium-ion battery cell manufacturing facilities.
The conditional commitment for the loan from the Government’s Advanced Technology Vehicles Manufacturing (ATVM) loan system, which hasn’t funded a new loan since 2010, to Ultium Cells LLC for sites in Ohio, Tennessee, and Michigan is anticipated to close in the upcoming months.
The Energy Department’s first loan would be made solely for a project involving the manufacture of battery cells under the vehicle programme, according to the plan, which was originally reported by Reuters. Prior to now, the programme offered Nissan, Ford Motor, and Tesla Inc. low-interest government loans that included some cell manufacturing.
By 2030, President Joe Biden wants to see 50% of all new cars produced in the United States to be electric or plug-in hybrids.
Jigar Shah, who oversees the Energy Department’s loan programme office, told Reuters in an interview that “we need to have vehicle manufacturing capability but also battery manufacturing capacity.” One of the newest improvements to this country’s battery production scale is provided by this project.
According to a statement from Ultium, “More than 5,000 new high-tech employment will be produced by facilities in the US. We appreciate the thought and are eager to collaborate with the Energy department on the next stages”.
Through the partnership, GM and LG will contribute more than $7 billion to the construction of three battery factories. An Ultium representative said that production at the Ohio battery plant is scheduled to start in August. There are presently 700 workers at the Warren, Ohio, facility. Its Tennessee plant will begin production in late 2023, followed by Michigan in 2024.
The objective, according to Shah, is to “assist these companies move faster and farther than they otherwise would have.” Ultium must provide employees with the local prevailing pay and fringe benefits in accordance with the loan agreement.
The Energy Department announced in April that it had given graphite miner Syrah Resources a conditional commitment for a $107 million loan to build a business in Louisiana that makes battery parts for electric vehicles. Currently, the program has access to $17.7 billion in loan authority. For motivated applicants, these loans can be closed fast.
The Energy Department announced in February that it would be awarding grants totaling $2.91 billion to increase the manufacture of advanced batteries, finance the creation and refinement of battery materials, and build battery cell and pack manufacturing and recycling facilities.,
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