The Department of Energy will loan G.M. and LG $2.5 billion to build battery factories.
The US Department of Energy announced on Monday that it will lend $2.5 billion to a battery maker owned by General Motors and LG Energy Solution to build battery factories , advancing the Biden administration's plan to promote electric vehicles and reduce reliance on China for critical components.
G.M. and LG Energy, a South Korean battery maker, are partners in Ultium, a joint venture that will use the money to manufacture batteries in Ohio, Tennessee and Michigan. The loan, which is conditional on the companies meeting certain requirements, is the first in more than a decade of a government program that provided $465 million to help Tesla produce its first sedan, the Model S. /p>
The US government has played an important and often unrecognized role in promoting electric vehicle technology. Many universities and contractors have received money from the Department of Energy's Advanced Research Projects Agency to develop batteries that can be charged faster and hold more energy per pound than previous versions. Some of these companies, such as Sila Nanotechnologies in Alameda, California, and Solid Power in Louisville, Colorado, are moving closer to making advanced batteries for major automakers.
The new Ultium plants are expected to provide more than 5,000 permanent jobs, the Department of Energy said. G.M. said the Ohio plant, located in Lordstown, will begin producing batteries this year.
Domestic battery manufacturing could also help reduce the cost of electric vehicles. Batteries are heavy, and building them near auto factories usually saves money.
Investments in Ohio and Michigan will help reassure labor leaders and state officials that they won't be left behind in the EV boom. Much of the corporate investment in new electric car and battery factories is going to Southern states like Tennessee, Alabama and Georgia. at the heart of this growing industry – right here at home,” said Jennifer M. Granholm, Secretary of Energy and former Governor of Michigan, in a statement.
The administration plans to spend $7.5 billion to build electric vehicle chargers along major highways, and more than $7 billion to dollars to establish supplies of lithium and other materials used to make batteries. China dominates lithium processing and CATL, based in the city of Ningde, is the world's largest battery manufacturer.
The US Department of Energy announced on Monday that it will lend $2.5 billion to a battery maker owned by General Motors and LG Energy Solution to build battery factories , advancing the Biden administration's plan to promote electric vehicles and reduce reliance on China for critical components.
G.M. and LG Energy, a South Korean battery maker, are partners in Ultium, a joint venture that will use the money to manufacture batteries in Ohio, Tennessee and Michigan. The loan, which is conditional on the companies meeting certain requirements, is the first in more than a decade of a government program that provided $465 million to help Tesla produce its first sedan, the Model S. /p>
The US government has played an important and often unrecognized role in promoting electric vehicle technology. Many universities and contractors have received money from the Department of Energy's Advanced Research Projects Agency to develop batteries that can be charged faster and hold more energy per pound than previous versions. Some of these companies, such as Sila Nanotechnologies in Alameda, California, and Solid Power in Louisville, Colorado, are moving closer to making advanced batteries for major automakers.
The new Ultium plants are expected to provide more than 5,000 permanent jobs, the Department of Energy said. G.M. said the Ohio plant, located in Lordstown, will begin producing batteries this year.
Domestic battery manufacturing could also help reduce the cost of electric vehicles. Batteries are heavy, and building them near auto factories usually saves money.
Investments in Ohio and Michigan will help reassure labor leaders and state officials that they won't be left behind in the EV boom. Much of the corporate investment in new electric car and battery factories is going to Southern states like Tennessee, Alabama and Georgia. at the heart of this growing industry – right here at home,” said Jennifer M. Granholm, Secretary of Energy and former Governor of Michigan, in a statement.
The administration plans to spend $7.5 billion to build electric vehicle chargers along major highways, and more than $7 billion to dollars to establish supplies of lithium and other materials used to make batteries. China dominates lithium processing and CATL, based in the city of Ningde, is the world's largest battery manufacturer.
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