U.S. Energy Department Finalizes $102 Million Vehicles Manufacturing Loan to Syrah Technologies

The U.S. Energy Department’s Loan Programs Office has closed a $102.1 million loan to Syrah Technologies LLC for the development of its Syrah Vidalia Facility. This marks the first loan from the Advanced Technology Vehicles Manufacturing, or ATVM, Loan program in over a decade, and the first such loan entirely for a supply chain manufacturing project.

The loan will aid the creation of the Syrah Vidalia Facility, the first of this sort in the U.S, given that it is a sole vertically incorporated, big scale active anode material, or AAM, producer outside of China. The facility manufactures graphite- based AAM, a vital ingredient used in lithium-ion batteries for electric vehicles and other clean energy technologies.

The loan reinforces the department’s commitment to creating a robust domestic supply chain for zero emission transportation solutions and supports the Biden Administrations pledge to expand the U.S. labour force to strengthen domestic battery manufacturing for EVs. Moreover, the project is anticipated to create around 150 construction jobs and 98 well paid, highly skilled operations vacancies.

The procurement of critical minerals, such as lithium and graphite, are crucial to expanding domestic production of batteries to provide electricity for the increasing number of EVs on U.S. roads. The Syrah facility, with its superior capacity is projected to produce enough natural graphite based AAM to provide for around 2.5 million EVs by 2040, thereby conserving approximately 970 million gallons of gasoline.

As it stands, the office following the approval of this loan, has $15.1 billion in outstanding ATVM loan authority. The latest loan approval reinforces the department’s strategy to secure the U.S. clean energy supply chain by boosting the accessibility of critical minerals and associated resources for clean energy technologies.