Energy Department will lend G.M. and LG $2.5 billion to build battery factories.
Summary
The U.S. Energy Department said Monday that it would lend $2.5 billion to a battery maker owned by General Motors and LG Energy Solution to build battery factories, advancing the Biden administrations plan to promote electric vehicles and reduce dependence on China for critical components.G.M. and LG Energy, a South Korean battery maker, are partners in Ultium, a joint venture that will use the money to manufacture batteries in Ohio, Tennessee and Michigan. The loan, which is conditional on the companies meeting certain requirements, is the first in more than a decade by a government program that provided $465 million to help Tesla produce its first sedan, the Model S.The U.S. government has played a significant and often unsung role in promoting electric vehicle technology. Numerous universities and entrepreneurs have received money from the Energy Departments Advanced Research Projects Agency to develop batteries that can be charged faster and contain more energy per pound than earlier versions. Some of these companies, such as Sila Nanotechnologies in Alameda, Calif., and Solid Power in Louisville, Colo., are moving closer to manufacturing advanced batteries for major carmakers.