LANSING, Mich. (Michigan News Source) – The US Department of Energy’s Loan Programs Office said Monday it is issuing a $2.5 billion loan to help start three lithium battery manufacturing hubs in Michigan, Ohio, and Tennessee.
The money will be loaned to Ultium Cells LLC, a joint venture of General Motors and South Korean battery manufacturer LG Energy Solutions. The goal is to make batteries to power electric vehicles, which goes along with GM’s pledge to go all-electric by 2035.
MORE NEWS: Firearm Deer Season Takes Aim in Michigan Today
Regardless of the market demand, the automaker plans to phase out conventional gas and diesel-powered engines by that date.
US Energy Secretary Jennifer Granholm and former Michigan governor said the loan would “jumpstart the domestic battery cell production needed to reduce our reliance on other countries to meet increased demand.”
In addition, Michigan Gov. Gretchen Whitmer said, “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.”
