DOE loans $2.5B to GM for batteries
The U.S. Department of Energy deployed a $2.5 billion loan to finance a battery-cell production plant run by General Motors and LG in the DOE's first concentrated push to support domestic battery manufacturing, Reuters reports.
Why it matters: The DOE's first battery-cell manufacturing loan comes as EV production has weathered a rocky supply chain crisis globally and U.S. manufacturers look to move production stateside.
What's happening: GM and LG have committed $7 billion to build three plants in Ohio, Tennessee and Michigan.
- The $2.5 billion DOE loan is the first since 2010 to come from the agency's Advanced Technology Vehicles Manufacturing loan program.
- It's also the first DOE loan to exclusively finance battery cell production in the U.S.
What we're watching: Other automakers may not have a choice but to lean into similar financing options for domestic battery-cell production if the supply chain crunch continues.