Shulou(Shulou.com)11/24 Report--

December 13, according to foreign media reports, the U.S. Department of Energy has finally decided to provide a $2.5 billion loan to Ultium Cells LLC, a joint venture between General Motors and LG New Energy (LG Energy Solution), which will be used to help pay for three new lithium-ion battery plants.

In fact, as early as last month, foreign media reported that the US Department of Energy plans to provide a $2.5 billion loan to Ultium Cells LLC to help it build three battery plants. The three battery plants, located in Ohio, Tennessee and Michigan, each have an area of 2.8 million square feet and are expected to create 6000 construction jobs and 5100 operational jobs.

At that time, foreign media said that the US Department of Energy's move caters to the US government's plan to promote electric vehicles and reduce the dependence on key components overseas.

It is reported that in order to support the development of the battery industry, the US government has launched a loan program called "Advanced Technology vehicle Manufacturing" (Advanced Technology Vehicles Manufacturing, referred to as ATVM), which is also the first time that the US Department of Energy has specifically provided loans for battery manufacturing under the automotive project. Previously, the project has also provided low-interest government loans to Tesla, Ford and Nissan.

Like other companies in the auto industry, GM is currently limited in the supply of batteries used in electric vehicles. The company also chose to work with LG to expand its battery production capacity as soon as possible.

Last week, GM and LG New Energy said they would invest an additional $275 million in a Tennessee joint venture battery plant to increase production by more than 40 per cent. The new investment is an additional $2.3 billion announced in April 2021 to build a plant in Tennessee, which will start production by the end of 2023.

In August, Ultium Cells LLC confirmed that General Motors and LG New Energy were considering building a fourth U. S. battery plant in New Carlisle, Indiana.

At the time, a person familiar with the matter said the fourth plant was expected to be similar to the other three, with an investment of more than $2 billion, but it was not clear when it would open.

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