The US Department of Energy (DOE), through its Loan Programs Office (LPO), announced the closing of a $2.5-billion loan to Ultium Cells LLC to help finance the construction of new lithium-ion battery cell manufacturing facilities in Ohio, Tennessee, and Michigan.
Ultium Cells, a joint venture between General Motors and LG Energy Solution, will manage battery cell production at the three facilities to address the growing demand for electric vehicles (EVs). The project is expected to create approximately more than 11,000 jobs—6,000 in construction jobs and 5,100 in operations—across the three facilities, including more than 700 United Auto Worker jobs in the newly-organized Warren, Ohio facility.
Ultium Cells Warren, OH. August 2022
The cells manufactured by Ultium Cells LLC are large format, pouch-type cells that use a nickel-cobalt-manganese-aluminum (NCMA) chemistry to deliver more range at less cost. The cells can be arranged in different combinations of flexible modules and battery packs to provide the energy for every segment on the road today, from performance vehicles to work trucks.
In July, LPO had announced a conditional commitment for the loan to Ultium Cells.
The announcement marks LPO’s first closed loan exclusively for a battery cell manufacturing project under the Advanced Technology Vehicles Manufacturing (ATVM) program.
DOE has attracted 98 active applications for projects across the country totaling more than $104 billion in requested loans and loan guarantees, as of the end of October.