U.S. finalizes $2.5 billion loan to GM, LG battery joint venture
U.S. Energy Secretary Jennifer Granholm touted the closing of the Ultium loan on a visit to Michigan with Labor Department Deputy Secretary Julie Su, Michigan Gov. Gretchen Whitmer, United Auto Workers (UAW) President Ray Curry and other officials, automakers and electric vehicle (EV) battery companies. They discussed strategies to recruit and retain a diverse and skilled battery workforce, and the Biden administration's Battery Workforce Initiative.
The American Battery Materials Initiative is a new effort to mobilize the entire government in securing a reliable and sustainable supply of critical minerals used for power, electricity and EVs.
Together, these actions are designed to improve America’s energy independence, strengthen national security, support good-paying jobs across battery supply chains, and lower costs for working families.
In October, President Biden announced that the Department of Energy would award $2.8 billion in grants from the Bipartisan Infrastructure Law to 20 manufacturing and processing companies for projects across 12 states.
Workers at the $2.3 billion Ultium plant in Ohio voted to join the UAW, a win for the union, which is seeking to organize the growing EV supply chain, according to Reuters.
GM and LG Energy are considering an Indiana site for a fourth U.S. battery plant. They are building a $2.6 billion plant in Michigan, set to open in 2024. This month, Ultium said it would boost its investment in a $2.3 billion Tennessee plant by another $275 million.
President Joe Biden has set a goal for 50 percent of U.S. auto production by 2030 to be electric or plug-in electric hybrid vehicles. GM plans to build 1 million EVs in North America by 2025 and to stop selling gasoline-powered vehicles by 2035.
The $430 billion Inflation Reduction Act approved in August included another $3 billion for ATVM loan costs and expanded uses to larger vehicles, maritime vessels, aviation, and other transportation modes.
Photo courtesy of GM. Construction of Ultium cells LLC battery cell manufacturing facility.