Today, the Department’s Loan Programs Office (LPO) made an agreement conditional to Ultium Cells LLC for a $2.5 billion loan to build fresh lithium-ion (Li-ion) battery manufacturing facilities for cells located in Ohio, Tennessee, and Michigan. The three facilities are expected to generate 6,000 well-paying construction jobs and 5,100 operational jobs once they reach total capacity. LPO cooperates with all lenders to create jobs that pay well. Strict labor standards in construction, operations, and throughout the loan term. It also works to comply with a robust Community Benefits Plan.
LPO offers a conditional commitment under the Advanced Technology Vehicles Manufacturing (ATVM) program that provides loans to assist in the U.S. manufacturing of light-duty vehicles, qualified components, and other materials that help improve fuel efficiency. It will be the first loan specifically for manufacturing battery cells under ATVM. The financing provided by the ATVM program is in addition to the previous investment that the Biden-Harris Administration made in the Bipartisan Infrastructure Law. $7.5 billion for electric vehicle charging infrastructure and over $7 billion to fund the crucial minerals supply chains required to manufacture batteries, components materials, recycling, and components.
Through the production of Li-ion batteries for EV pack batteries within the United States, Ultium Cells will provide GM with its efforts to eliminate the emission of all tailpipes from the new light-duty vehicles it will introduce in 2035. To help achieve zero emissions in the future, GM plans to install the capacity to manufacture 1 million EVs in North America by the end of 2025. The construction of these three facilities also bolsters the company’s goal of making its operations and products globally carbon-neutral in 2040.
The cells manufactured by Ultium Cells LLC are large format, pouch-type cells that use a state-of-the-art nickel-cobalt-manganese-aluminum (NCMA) chemistry to deliver more range at less cost. The cells can be set up with various modular batteries and modules to power all road segments today, from high-performance vehicles to work vehicles.
The latest commitment to conditionality comes when the market for electric vehicles is expected to increase significantly over the next few years. According to BloombergNEF, the sales of plug-in vehicles are expected to rise by 6.6 million in 2021 to 20.6 million by 2025. The growing demand for EVs will increase the demand for EV batteries as BloombergNEF expects demand to surpass 580 GWh in America in 2030.
LPO supports its participation in the National Blueprint for Lithium Batteries, which provides an idea for both the United States and its partners to create a secure supply chain that promotes the long-term competitiveness of the economy in America and facilitates equitable jobs creation and the reduction of carbon.
