US Energy Department to loan GM $2.5 billion for battery manufacturing

General Motors and LG Energy Solutions are constructing battery cell facilities with the help of the US government.

It is taking the combined efforts of business and government to help facilitate a shift to cleaner, renewable energy. The latest efforts being made out of the United States is via the Energy Department which is set to loan $2.5 billion dollars to a venture between General Motors and LG Energy Solutions. The joint venture will focus on constructing facilities used to create battery cells.

Pictured is a Chevrolet Blazer EV.  US Energy Department loans GM $2.5 billion
Source: General Motors

Reported on by David Shepardson of Reuters on July 25, 2022, the US Energy Department plans to loan $2.5 billion to the joint venture between General Motors and LG Energy Solutions, known as Ultium Cells LLC. The manufacturing plants will be in Ohio, Tennessee, and Michigan and will oversee the creation of lithium-ion cells and, according to Ultium, will create “more than 5,000 new high-tech jobs.”

Back in 2009, the US government bailed out General Motors. A report from Reuters from 2014 notes that the government spent “about $50 billion” to bail out the company after its bankruptcy, which resulted in the government losing $11.2 billion dollars.

More recently, President Biden attended the GM Factory Zero inauguration in 2021 where he credited GM CEO Mary Barra for “electrifying the entire auto industry.” Fred Lambert of Eletrek wrote an op-ed about how this is quantifiably incorrect, noting that “GM backed Donald Trump’s effort to curtail California’s right to implement stricter emission standards,” standards that would force General Motors to create more electric vehicles.

While this loan of $2.5 billion means that GM and LG are investing more than $7 billion into the battery cell plants, it’s also important to note the track record of General Motors. The company has also dumped its stake in Ohio-based EV start-up, Lordstown Motors. It would appear that with this government loan, Lordstown Motors has some large competition coming to the area.

Though the push toward cleaner, more environmentally friendly energy and vehicles is needed, it does come at various costs. Hopefully the new manufacturing plants will see GM deliver more than the 26 EVs it shipped in Q4 2021. Be sure to keep it locked to Shacknews as we bring you the latest on electric vehicle technology.

Guides Editor

Hailing from the land down under, Sam Chandler brings a bit of the southern hemisphere flair to his work. After bouncing round a few universities, securing a bachelor degree, and entering the video game industry, he’s found his new family here at Shacknews as a Guides Editor. There’s nothing he loves more than crafting a guide that will help someone. If you need help with a guide, or notice something not quite right, you can Tweet him: @SamuelChandler

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