A joint venture between General Motors and LG Energy Solution has closed on a $2.5 billion federal loan to help finance three lithium-ion battery cell plants in Ohio, Tennessee and Michigan.
MICHIGAN—The US Department of Energy today announced the closing of a $2.5 billion loan to help finance the construction of three new lithium-ion battery cell manufacturing facilities—including a factory in Lansing that’ll employ an estimated 1,700 people and lead to more than 2,000 new construction jobs.
The joint venture between GM and LG Energy is expected to create about 11,000 jobs in total. The loan is part of a government program designed to address the growing need for batteries for electric vehicles.
President Joe Biden’s administration has been working to strengthen US energy independence and reduce dependence on China for critical components. Ultium Cells will supply GM as it works to convert its light-duty fleet to all-electric by 2035, reports the Associated Press. Another factory is planned in Spring Hill, Tennessee. The third plant near Warren, Ohio, began battery cell production in August.
Former Michigan Gov. and current US Secretary of Energy Jennifer Granholm said the federal government is “flooring the accelerator” to build out the electric vehicle supply chain in Michigan and beyond. Notably, the manufacturing efforts will be led by American workers and their unions, she said.
“This loan will jumpstart the domestic battery cell production needed to reduce our reliance on other countries to meet increased demand and support President Biden’s goals of widespread EV adoption and cutting carbon pollution produced by gas-powered vehicles,” Granholm explained.
In October, Biden launched the American Battery Materials Initiative alongside $2.8 billion in grants from the Department of Energy to build out the battery supply chain. This latest loan closing is set to help support Biden’s goal of having EVs make up half of all new vehicle sales by 2030.
The Associated Press contributed to this report.