U.S. Department Of Energy Finalizes $2.5B GM Ultium Cells Loan19
The U.S. Department of Energy (DOE) has announced the closing of a $2.5 billion loan to Ultium Cells LLC – a joint venture between General Motors and LG Energy Solution. This loan, made possible by the DOE’s Loan Programs Office, will help finance the creation of three previously-announced Ultium Cells plants.
Specifically, this loan will be used to facilitate the construction of the following Ultium manufacturing plants:
- Ultium Cells in Lordstown, Ohio
- Ultium Cells in Spring Hill, Tennessee
- Ultium Cells in Lansing, Michigan
This project is forecasted to create more than 11,000 jobs, including 6,000 in construction and 5,100 in operations, across all three facilities.
These battery plants will produce modular Ultium battery cells that will be used in GM electric vehicles, which will include cars, trucks, and – interestingly, per the DOE’s press release – busses. The objective of the loan is to facilitate GM’s plan to field 30 EVs by 2025, as well as respond to tightening emissions regulations.
The funds for the loan represent the first closed loan sourced from the Loan Programs Office’s Advanced Technology Vehicles Manufacturing (ATVM) program. In the past, the ATVM loan program has issued loans to Tesla, Ford and Nissan, some of which was applied toward battery cell manufacturing.
This financing effort compliments President Joe Biden’s Inflation Reduction Act, which provides billions for EV-related infrastructure and supply chain investment. The news comes on the heels of the Biden administration setting a goal calling for 50 percent of U.S. automobile production to be electric or plug-in electric hybrid vehicles by 2030.
Furthermore, the Inflation Reduction Act provides an additional $3 billion towards ATVM loan costs and expanded use to larger vehicles, maritime vessels, aviation, and other transportation modes, providing an avenue for future investments.
The announcement of this loan to Ultium Cells LLC comes as no surprise, as GM Authority reported back in July 2022 that the U.S. DOE intended to provide the financing.
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I have not seen the interest rate or time limits on paying back the loan. The government needs to provide the citizens this information.
Better yet, GM needs to finance their own venture. Not the US taxpayer.
Of all the languages in the world you chose to speak facts.
What a bunch of garbage. Why does the government US citizens have to foot the loan for a private endevore. Does this really show the true strength of their books.
First off the government mandates for EVs specifically disadvantages local ICE manufacturers. Secondly would you rather see these jobs go to China? Do not think for a minute that China is not funding advanced manufacturing with in their borders. I wonder how many VW/Porsche accidents( sinking the super carriers) would happen before that would become unviable?
Peaky Blinker, we are saying the information on this loan should be public. I have seen this loan posted on CNBE, ABC, NBC, CBE, FOX, CNN, and GM Authority,- No one gives the details behind the money the U.S. citizens are loaning out. Have you heard the details?
The Loan is based on a laws that have been in place for a long time. Can probably go look it up.
Since the loans were wrote most likely a year ago and are just in the final days of closing one could assume the interest rates will be less than 4%, loans like this tend to structure over ten years or infinity depending on how much TIF is included. Yes I know TIF is most often locally generated but on this scale with this admin everything is possible.
My long answer was for BJ. His sentence structure almost sounds like a CCP bot/troll.
You made 3 comments, you definitely are one of the resident trolls on this website.
Real person right here in USA.
Real troll you mean.
Nothing I look forward to more than flying in a EV Plane @ 25,000 feet over the ocean and the pilot comes over the intercom telling us “We have a Dead Battery folks” 😨😱😱😱 “We have nothing to fear but fear itself”. Ya, I’ll be screaming that all the way down!
Just bcs I support MB/gm..? The left gets so focused on hating the right that they fail To see that corporations have to kiss the azz of who ever is in charge. Bush ok’d the loans, GM paid them back in in full +++, Trump loosened CARB rules MB said thank you and GM made billions of extra profit and paid billions in taxes. Biden cranked up EV pressure(throttling the oil industry) MB asked for help. Give and take, maneuvering. I do not believe MB has publicly praised or criticized either Red/Blue side. Yes I am biased but fair.
I agree joe Biden is the worst president of all time.
You spelled “Trump” wrong.
I didn’t spell anything wrong. Maybe you just can’t read. Were you in special ed class?
Well there it is. The truth we all already knew. This push to all-EV is a forced and completely subsidized government effort. The car companies are only going along, because it’s not their dime and frankly, they’re being forced to, globally. I don’t remember reading about any government loans for the retooling of Bowling Green for C8 production. A car people actually want.
Why oh why wasn’t human engineering considered in these new battery plants financed by Uncle Sam ( us taxpayers ) ?
Note: No rooftop skylights or side windows to allow natural light to bath the workplace and assist with lighting, plus also to reduce energy costs. You have the ranks working in an uninviting closed space. Natural light improves human moral and attitude.
Go to continental Europe and see how the Germans, Swiss, French, Dutch, etc. have designed their industrial facilities with skylights and side windows.
Look at how Walmart has used skylights to improve their interior environment.
The New battery plant in the picture of this article looks like an incarceration fortress.
Do you catch what I am suggesting, skylights and side windows to increase workers attitudes, safety and productivity?
What say you?