U.S. announces $2.5 billion loan to help GM and LG make EV batteries

The US Department of Energy announced today a $2.5 billion loan to help start three lithium battery manufacturing hubs in Michigan Ohio and Tennessee .

The US Department of Energy loan programs office will loan the money to Ultium Cells LLC, a joint venture of General Motors and South Korean battery manufacturer LG Energy Solutions making batteries to power electric vehicles. General Motors has pledged to go all-electric by 2035, phasing out conventional gas and diesel-powered engines.

US Energy Secretary Jennifer Granholm said the DOE loan would “jumpstart the domestic battery cell production needed to reduce our reliance on other countries to meet increased demand.”

“DOE is flooring the accelerator to build the electric vehicle supply chain here at home – and that starts with domestic battery manufacturing led by American workers and the unions that support them,” Granholm said.

president Biden set an ambitious goal for electric vehicles (EV) to make half of all new vehicles sold in 2030 electric. Thanks to his leadership, economic and industrial strategy, and landmark legislative accomplishments, the United States is seeing historic investment in electric vehicle and battery manufacturing – which has resulted in EV sales tripling since President Biden took office. This market transformation is expected to increase demand for critical minerals such as lithium and graphite used in EV batteries. Today’s announcements demonstrate how the United States is poised to meet this challenge while growing our economy and creating high-quality union jobs in the battery supply chain.