GM-LG Ultium Cells Battery Venture May Get First Federal ATMM Loan in 10 Years

General Motors and LG may be the first companies in 12 years to receive a loan under the federal government’s Advanced Technology Vehicle Manufacturing (ATVM) loan program. Reuters, Quote information from stakeholders.

The US Department of Energy Green car reportThere are details about the arrangements that will appear later in the day.

according to release The $ 2.5 billion loan currently in operation will help fund the construction of new lithium-ion battery cell manufacturing facilities in Ohio, Tennessee, and Michigan. The three facilities (perhaps already announced by the company) are expected to generate 5,100 operational jobs and 6,000 construction jobs.

LG Energy Solution and GM are partners of Ultium Cells LLC, which builds the large format pouch cells that underpin the Ultium EV architecture of automakers. Ultium Cells LLC is also building a production plant to expand cell production for EV models in the mass market. Another venture with South Korea’s POSCO Chemical will support the supply of raw materials to production facilities.

DOE Conditional Commitment to Ultium Cells for $ 2.5 Billion ATMM Loan

According to the report, it is not entirely clear whether ATMV loans will be sent to Ultium Cells or jointly with other companies. The US Department of Energy-supervised ATMM program was founded under the George W. Bush administration, became effective in 2007, and was funded in 2008. ..

General Motors Ultium Battery

The lending program has $ 17.7 billion in lending authority and has financed $ 8 billion to date.I announced the program Effectively restarted in 2014 And it has been pivoted to emphasize suppliers over car makers, and new loans have not been approved. The program got another recent kickstart through last year’s infrastructure package.

GM and LG have encountered some potential bumps in a long supply relationship.Last year LG agreed Repay $ 1.9 billion to GM Of the estimated $ 2 billion cost of recalling approximately 140,000 Chevrolet Bolt EVs, including a complete replacement of the battery pack.

The ATVM program is not necessarily focused on electric vehicles. Ford, for example, used its largest loan to date, $ 5.9 billion, as a jump point to further produce a smaller EcoBoost turbocharged petrol engine. However, the remaining loans favor EV or electrification technology.For example, Nissan is using a loan to establish leaf production in the United States

Tesla is probably the biggest success story of a loan program. The entire loan granted in 2009 was paid off in May 2013, a few years ago.Was so Sensitive subjectWhen GM and Chrysler were facing serious financial difficulties, but without it, Tesla would not have been able to expand production of the Model S.

Fisker Atlantic Design Prototype-2012 New York Auto Show

Fisker Automotive, on the other hand, was the most notable failure of the program and was once intimately intertwined with Vice President Biden. Wrong layout of Fisker’s product plan..Fisker received only the original $ 192 million $ 592 Million Loan The federal government eventually only restored some of it before it defaulted.

Foreign ownership is permitted, but the project must be done entirely in the United States and the applicant must prove that it is a “reasonable outlook for repayment.”

Aptera2e production design

There were some notable rejections such as Brammo (electric motors) and Coda Automotive (affordable EVs with some Chinese-made vehicles). Aptera (Three-wheeled ultra-high efficiency vehicles) and Bright Automotive (plug-in hybrid vans) were put down, perhaps in response to their own “reasonable outlook” clause, before being approved.

The GM / LG application is not the first in a few years. Mullen Automotive also reported in April that it submitted an ATMV loan application for the production of electric cargo vans in Mississippi.

DOE also reveals that Ultium has not yet been traded. “This conditional commitment demonstrates the department’s intention to fund the project, but there are still some steps that must be met before the department can issue the final loan. There is. “

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This work was originally published at 3:20 pm ET and was updated at 10:50 pm ET to accommodate additional information regarding conditional commitments.

https://ift.tt/tv5PQrC GM-LG Ultium Cells Battery Venture May Get First Federal ATMM Loan in 10 Years

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