US Resurrects Green Energy Loan Program For GM Battery Joint Venture

An anonymous reader quotes a report from Reuters: The U.S. Energy Department on Monday announced it intends to loan a joint venture of General Motors and LG Energy Solution $2.5 billion to help finance construction of new lithium-ion battery cell manufacturing facilities. The conditional commitment for the loan to Ultium Cells LLC for facilities in Ohio, Tennessee, and Michigan is expected to close in the coming months and comes from the government's Advanced Technology Vehicles Manufacturing (ATVM) loan program, which has not funded a new loan since 2010. The plan, first reported by Reuters, would mark the Energy Department's first loan exclusively for a battery cell manufacturing project under the vehicle program. The program previously provided low-cost government loans to Tesla, Ford and Nissan, which included some cell manufacturing. "We have to have vehicle manufacturing capacity but also battery manufacturing capacity," Jigar Shah, who directs the Energy Department loan program office, told Reuters in an interview. "This project provides one of the newest additions to battery manufacturing scale in this country." [...] Shah said the department has received more than $18 billion in loan requests from the auto program and expects at least another $5 billion in requests that are being actively prepared. "I do think there will more loans issued," Shah said, declining to offer a precise timeline. The program currently has $17.7 billion in lending authority available. Shah said "for motivated borrowers, they can close these loans rather quickly." Reuters notes that GM and LG are investing more than $7 billion via the venture. Production at its Ohio battery plant is expected to begin in August. Production is set to begin at its Tennessee plant in late 2023 and in Michigan in 2024.

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