As part of the federal government’s ongoing moves to escalate the rate of automotive electrification in the U.S., the Department of Energy announced today it had closed a $2.5 billion loan to Ultium Cells LLC for the construction of three electric vehicle battery factories. According to the Department of Energy, the deal with the joint venture owned by General Motors and LG Energy Solution should create approximately 11,000 jobs, including 5,100 at the factories themselves.
The loan will support the construction of new plants in three states: Ohio, Michigan and Tennessee. Ultium Cells first started production at its only completed factory in Lordstown, Ohio. The company also has factories currently under construction in Spring Hill, Tennessee, and Lansing, Michigan.
In a statement, Jennifer Granholm, the U.S. Secretary of Energy, said the loan will “jumpstart the domestic battery cell production needed” for U.S. self-sufficiency in meeting electric vehicle demand.