General Motors and LG get $2.5 billion to develop lithium batteries

  • General Motors and LG get funding from the US Department of Energy.
  • The loan amount is $2.5 billion.
  • US expects 50% of vehicles to be electric by 2030

The US Department of Energy will lend $2.5 billion to a joint venture between General Motors and LG Energy to finance the construction of new lithium battery cell manufacturing facilities.

This loan will crystallize in the months to come. This would be the Department of Energy’s first loan for a project to manufacture battery cells for the vehicle program. The company is Ultium Cells LLC.

Previously, other companies got low-cost financing such as Tesla, Ford, and Nissan that included manufacturing some cells. In this case it is different since the financing is total for General Motors and LG.

The loan is in line with the request of President Joe Biden, who set the goal for 2030: 50% of cars on the road in the United States must be electric or hybrid.

“We need to have vehicle manufacturing capability, but also battery manufacturing capability,” Jigar Shah, who heads the Energy Department’s loan program office, told Reuters in an interview. “This project is one of the newest additions to the scale of battery manufacturing in this country. The facility will create more than 5,000 new high-tech jobs in the United States.

GM and LG have invested more than $7 billion to build three battery manufacturing plants. Their main factory is in Ohio.

The official Democratic policy of lending to the lithium battery industry also included graphite miner Syrah Resources in April this year. She expanded an electric car battery parts plant in Louisiana.

The Department of Energy has received more than $18 billion in loan applications for the electric car manufacturing program. Further loans are expected to be made available to businesses in the near future.

During this year, the ministry said it would provide $2,910 million to encourage the production of advanced batteries, the financing of production plants, the refining of battery materials, the manufacture of cells and battery packs. batteries and recycling facilities.