US Provides $3.2 Trillion Loan Support to LG Energy Solution and GM Battery Joint Venture

[Asia Economy Reporter Jeong Hyunjin] LG Energy Solution and the battery joint venture of General Motors (GM), Ultium Cells, will receive a loan support of $2.5 billion (approximately 3.26 trillion KRW) from the U.S. government.

On the 12th (local time), according to AP News and others, the U.S. Department of Energy announced that it decided to provide loans to support the costs required for the construction of three lithium-ion battery manufacturing facilities of Ultium Cells in Ohio, Tennessee, and Michigan.

LG Energy Solution and GM's joint venture 'Ultium Cells' Ohio battery joint factory (Photo by Ultium Cells)

The Department of Energy stated that this financial support is the first case of support for a battery manufacturing project under the Advanced Technology Vehicles Manufacturing (ATVM) program. The ATVM program is a loan support program for eco-friendly vehicles, and the Inflation Reduction Act (IRA) created by the Biden administration allocated an additional $3 billion in funding for this support program.

The three manufacturing facilities of Ultium Cells will produce batteries to meet the demand for electric vehicles within the United States. The Department of Energy emphasized that the construction of these manufacturing facilities will create a total of 11,000 jobs.

Jennifer Granholm, Secretary of the Department of Energy, stated, "This loan will promote domestic battery production necessary to reduce dependence on other countries, reduce carbon emissions from gasoline vehicles, and support President Biden's electric vehicle policy goals."

President Biden announced and is actively pursuing the "Clean Cars and Trucks Blueprint" last year, which includes the goal of making half of the cars sold in the United States electric vehicles by 2030.

This content was produced with the assistance of AI translation services.