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GM and LG to build 3 US EV battery factories with a $2.5B DOE loan

The US Division of Vitality (DOE) has introduced a conditional mortgage of $2.5 billion for Ultium Cells, a three way partnership of Basic Motors (GM) and battery producer LG Vitality Answer, to assist finance EV lithium-ion battery cell factories in three states. The mortgage is meant to help the growth of electrical car deployment within the US.

The mortgage, which is predicted to shut inside months, will assist Ultium present EV batteries for GM, which has mentioned that it plans to fabricate 1 million EVs a yr by 2025.

The US authorities’s Advanced Technology Vehicles Manufacturing Loan Program, which has beforehand lent cash to Tesla, Ford, and Nissan, is offering the funding – and that program hasn’t issued a brand new mortgage since 2010.

It’s additionally the primary time that this DOE program has issued a mortgage completely for a battery cell manufacturing undertaking.

The factories can be positioned in Michigan, Ohio, and Tennessee. The three services are anticipated to create 6,000 well-paid development jobs and 5,100 operations jobs as soon as they’re at full capability, in response to the DOE.

Reuters notes:

In complete, GM and LG are investing greater than $7 billion through the enterprise to construct three battery vegetation. Manufacturing at its Ohio battery plant is predicted to start in August, an Ultium spokeswoman mentioned. The plant in Warren, Ohio presently has 700 employees.

Manufacturing is ready to start at its Tennessee plant in late 2023 and in Michigan in 2024.

The launch of the three factories will find extra of the battery-manufacturing provide chain within the US, and the DOE asserts that it’ll assist decrease prices and broaden entry and affordability for US-made electrical autos.

The mortgage helps additional the Biden administration’s plan to have 50% of US auto manufacturing be electrical and hybrid by 2030.

Learn extra: The US Energy Department wants to loan $43B for EV and clean energy projects


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