DOE to loan GM $2.5B to build three Ultium battery cell facilities

DOE to loan GM $2.5B to build three Ultium battery cell facilities

The U.S. Department of Energy (DOE), through its Loan Programs Office (LPO), has announced the closing of a $2.5 billion loan to Ultium Cells LLC to help finance the construction of new lithium-ion battery cell manufacturing facilities in Ohio, Tennessee and Michigan.

Ultium Cells, a joint venture between General Motors and LG Energy Solution, will manage battery cell production at the three facilities. In October, President Biden launched the American Battery Materials Initiative alongside $2.8 billion in grants from the DOE to build out the battery mineral and material supply chain.

In July, the LPO announced a conditional commitment for the loan to Ultium Cells to manufacture large format, pouch-type cells that use a certain chemistry to deliver more range at less cost. Ultium Cells says it plans to use this technology in coordination with GM’s work to eliminate 100% of tailpipe emissions from its new U.S. light-duty vehicles by 2035. This also supports GM’s plans to install capacity to produce more than one million EVs annually in North America and make its global products and operations carbon neutral by 2040.

The announcement marks the LPO’s first closed loan exclusively for a battery cell manufacturing project under the Advanced Technology Vehicles Manufacturing (ATVM) program. Financing from the ATVM program complements the historic investments of the president’s Bipartisan Infrastructure Law —$7.5 billion for EV charging infrastructure and more than $7 billion for the critical minerals supply chains necessary for batteries, components, materials and recycling.

Across all LPO’s new and improved programs, the DOE says it has attracted 98 active applications for projects across the country totaling over $104 billion in requested loans and loan guarantees, as of the end of October.

You May Also Like

Lightning eMotors Launches Online EV Fleet Planner

The Fleet Planner displays recommended Lightning eMotors vehicles and the associated charge rates needed to fit the specific application.

Lightning-eMotors-Fleet-Manager

Lightning eMotors has released its new virtual "Fleet Planner," a free fleet configuration tool that allows fleet managers to input their individual fleet characteristics and receive a customized operating cost analysis and carbon-reduction metrics based on the recommended Lightning eMotors electric vehicle (EV) that best fits their specific needs.

Shell acquires EV charging company Volta for $169M

The companies say the transaction brings Volta’s dual charging and media network to Shell’s established brand.

BorgWarner-Santroll-eMotor-Handshake-1400
DOE awards millions for next-gen EV battery development

Projects in the program aim to expand domestic EV adoption by developing batteries that last longer and charge faster.

DOE-Department-of-Energy-next-gen-solid-state-ev-battery-1400
MEMA establishes Center for Sustainability

MEMA says the center’s community will help members build an advantage as they respond to the needs of their customers.

MEMA-Center-Sustainability-1400
LG Energy, Honda JV to produce EV batteries

The companies’ overall investment related to the JV is projected to reach $4.4 billion.

Honda-Level-2-EV 1400

Other Posts

Apollo Tyres launches new EV all-season tire in Europe

Apollo Tyres launches the Vredestein Quatrac Pro EV, Europe’s first all-season tire developed specifically for electric vehicles and hybrids.

Vredestein-Quatrac-Pro-EV-application-1400
NAPA hopes NexDrive training will be shops’ EV entry point

The program is launching in the U.S. after seeing success in Europe and Canada.

NAPA-EV-Training
EV trends: From battery leasing to the death of the hybrid

The EV headlines just don’t stop coming, but where are the trends actually leading the automotive industry?

Amped-Featured-Image-EP29
Volkswagen enhances Modular Electric Drive System for EVs

Volkswagen’s Modular Electric Drive System upgrade will increase range and charging speeds in its EVs.

Volkswagen-MEB-platform-EV-1400