The US Department of Energy (DOE) has announced it intends to offer a $2.5 billion loan to Ultium Cells LLC, the battery joint venture between General Motors and LG Energy Solutions.
Expected to close in the coming months, the loan will help the joint venture finance construction of new lithium-ion battery cell manufacturing plants in Ohio, Tennessee and Michigan. The three facilities are expected to create 6,000 good-paying construction jobs and 5,100 operations jobs when they are at full capacity, DOE said in a July 25 press release.
The conditional commitment for the loan to Ultium Cells comes from the US government's Advanced Technology Vehicles Manufacturing (ATVM) program, which last funded a loan in 2010. This will be the Department of Energy's first loan for a battery cell manufacturing project under the vehicle program.
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