General Motors is set to receive a joint venture loan from the United States Department of Energy for its battery cell production that mainly focuses on the Ultium power packs from the company. The Energy Department will loan GM and LG Energy Solution a whopping $2.5 billion for the project to bring more lithium-ion batteries for electric vehicles in the future.
Tesla was the previous recipient of this loan for their EV production.
GM to Receive US Energy's Joint Venture Loan for Batteries
(Photo : Steve Fecht for General Motors)
General Motors reveals its all-new modular platform and battery system, Ultium, Wednesday, March 4, 2020 at the Design Dome on the GM Tech Center campus in Warren, Michigan.
General Motors and LG Energy Solution are set to receive a joint venture loan from the US Department of Energy, according to Reuters, and it will focus on providing a budget that will help build manufacturing facilities. It would benefit both the EV maker and the battery maker as they would get a significant boost in their production budget.
The sites would focus on battery cell facilities in Ohio, Tennessee, and Michigan that will focus on a conditional commitment for GM's Ultium Cells LLC. It comes from the US Department of Energy's Advanced Technology Vehicles Manufacturing (ATVM) loan program, which last gave funding to projects back in 2010.
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GM, LG to bring More Lithium Ion Batteries Under Ultium
According to CNET, this is the first battery cell facility-exclusive loan for the project, which GM will soon receive. The program is a low-cost government loan that previously provided funding for companies like Tesla ($465 million), Ford Motor Company ($5.9 billion), and Nissan ($1.6 billion).
It is the first time that the program would bring a boost to its battery cell production facility to fund, a first with GM and LG.
GM's Ultium and EVs
GM's Ultium Drive is a platform that is suitable for all types of vehicles from the company, may it be SUVs, sedans, crossovers, or pickup trucks; it features the famous batteries at the car's base. The Ultium batteries and Ultium Drive brings a complete set that would bring a car mobility, and it is available for different trims or vehicle types from GM.
The latest there is from GM that will feature the Ultium Drive, and a clean energy option from the company is the Chevrolet Blazer EV, a new electric SUV for family or personal use. What it brings are the famous Ultium power cells that will provide its function for all needs, centering on what the EV requires to power the entire car.
Hard work pays off, and this time, it is GM on the other receiving end for a boost in their production needs and requirements from the government, mainly focusing on a joint venture loan. The money that the Energy Department will soon grant the car manufacturer aims to boost its battery cell creation that would translate to more EVs that would sell.
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Written by Isaiah Richard
