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$2.5 Billion Loan From U.S. Government Energizing GM Battery Venture

The conditional loan will be provided to the joint venture Ultium Cells LLC, the company GM formed with LG Energy Solution of South Korea, for the construction of new lithium-ion battery cell manufacturing facilities.
GM Headquarter Detroit 6 photos
Photo: GM
GM FactoryLGLGGM Austin IT Innovation CenterUltium Factory Lansing
The government will fund the conditional loan through the Advanced Technology Vehicles Manufacturing (ATVM) loan program, which is expected to close in the next couple of months.

Conditional terms of the loan dictate that the Ultium pay workers the prevailing local minimum wage with fringe benefits.

The two companies have invested over $7 billion (6.8b euros) via the venture and currently have three facilities under construction. The first is a 2.8 million-square-foot (260,000 sq m) operation in Warren, Ohio, that is expected to begin producing batteries in August. Another facility of the same footprint is under construction in Spring Hill, Tennessee, where production is planned to begin late next year. The third facility to break ground is located in Lansing, Michigan, and is scheduled to open in 2025.

Ultium produces a unique modular battery build that provides flexibility with regard to size and capacity to be tailored for different model energy demands. The battery technology is vital to GM's ambitious plan to establish itself in the growing EV market.

Ultium said in a statement that "facilities will create more than 5,000 new high-tech jobs in the United States. We are grateful for the consideration and look forward to working with the Department of Energy on next steps." as reported by Reuters.

The U.S Government's ATVM program was established in 2008 and originally planned for the $25 billion (24.4b euros) fund to help automotive manufacturers meet higher gas mileage standards for vehicles built on U.S. soil. The last loans to be granted came in 2009 with $8.4 billion (8.2b euros) in conditional loan agreements for Ford Motor Company; Nissan North America, Inc.; Tesla, Inc., and Fisker Automotive to fund the development of advanced vehicle technologies.
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