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General Motors and LG secured a $2.5 billion low-interest loan from the U.S. Department of Energy to build battery facilities in three states, federal officials announced Monday.
The Ultium-branded plants will be in Tennessee, Michigan and Ohio and will create more than 11,000 jobs in those states between plant construction and operations. The money is part of a larger package of loans and grants previously approved under the Advanced Technology Vehicle Manufacturing Program. That initiative, and more than $14 billion earmarked in a broad infrastructure bill passed a year ago, aims to boost U.S. and North American manufacturing and mining for electric vehicles and batteries.
This summer, federal officials announced their intention to lend money to GM and LG to produce cells in a pouch using nickel, manganese, aluminum and cobalt chemistry to reduce dependence on foreign minerals, increase range and lower overall costs. GM said it aims to build and sell one million EVs in North America by the end of 2025 using its Ultium batteries and platforms.
“DOE is preparing an accelerator to build the electric vehicle supply chain here at home — and that starts with domestic battery production led by American workers and the unions that support them,” said US Energy Secretary Jennifer M. Granholm and the former governor of Michigan in Statement. “This loan will accelerate the domestic production of battery cells needed to reduce our reliance on other countries to meet increased demand and support President Biden’s goals of widespread adoption of electric vehicles and reducing the carbon pollution produced by gas-powered vehicles.”
Since its passage, the Inflation Reduction Act and related EV tax credit requirements have prompted a number of EV battery announcements in the US from automakers such as BMW, Volkswagen, GM, Ford, Hyundai and Kia.
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