NEW YORK (AP MODIFIED) — A joint venture between General Motors and South Korean battery company LG Energy Solution has closed on a $2.5 billion federal loan to help finance three lithium-ion battery cell plants in Ohio, Tennessee, and Michigan.
The Department of Energy awarded the loan to the venture, called Ultium Cells, for the plants, which are expected to create about 11,000 jobs. The loan is part of a government program designed to address the growing need for batteries for electric vehicles.
The loan was first announced in July.
The Biden administration has been working to strengthen U.S. energy independence and reduce dependence on China for critical components. Ultium Cells will supply GM as it works to convert its light-duty fleet to all-electric by 2035.
The plants are planned for Lansing, Michigan and Spring Hill, Tennessee. A plant near Warren, Ohio, began battery cell production in August.
Michigan Governor Gretchen Whitmer released a statement about the investment on Monday:
“As the state that put the world on wheels, high-tech manufacturing is part of both our past and our future. That’s why we’ve been working hard to outcompete other states for every job and every dollar of investment, so everyone knows Michigan is the place to do business. Today, the Department of Energy announced continued support for GM’s $2.5 billion investment to build Ultium’s third battery cell plant in Lansing, promising 1,700 new jobs. Investing in our workers will help us bring supply chains home and ensure that Michigan is the best place to innovate, design, test, and manufacture the technology of the future.”
