U.S. Energy Department Commits $2.5 Billion Loan to EV Battery Cell Manufacturing

U.S. Energy Department’s Loan Programs Office has announced a provisional pledge to Ultium Cells LLC for a $2.5 billion loan to aid the financing of new-found lithium-ion battery cell production plants in Ohio, Tennessee, and Michigan. The three plants are expected to bring economic prosperity into their respective states and are likely to create 6,000 well paid construction jobs and 5,100 operation jobs.

The office is offering the provisional guarantee via the Advanced Technology Vehicles Manufacturing, or ATVM, program, which offers loans to support domestic manufacturing of light-duty vehicles, qualifying parts, and resources that enhance fuel economy. The loan would be the first of its kind exclusively for a battery cell production plan under ATVM. Funding from the ATVM programs is in sync with historic funding in the 2021 Infrastructure Investment and Jobs Act – $7.5 billion for EV charging infrastructure and more than $7 billion for the critical minerals supply chains essential for batteries, components, materials, and recycling.

Ultium Cells is expected to supply GM with Li-ion battery cells for EV battery packs in the U.S., so that GM can eliminate 100 percent of tailpipe emissions from new light duty vehicles by 2035. Moreover, the construction of these three facilities will support GMs strategy to make its global products and operation carbon neutral by 2040.

Elsewhere, the office is assisting the National Blueprint for Lithium Batteries, which showcases an idea for the U.S. and its associates to create a secure battery materials and technology supply chain that encourages long term economic effectiveness across the country and facilitates job creation and decarbonization.