Energy Department will lend G.M. and LG $2.5 billion to build battery factories.
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 administration’s 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.
Related Knowledge Center: Energy storage
A key to the adoption of renewable energy is the development of economical ways to store energy, in the form of batteries or other technologies.