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Energy Dept. backs $2.5B loan to GM venture for EV batteries

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2021 Chevy Bolt Electric

The Energy Department says it has made a conditional commitment to lend the money to Ultium Cells.

WASHINGTON (AP) — A joint venture between General Motors and South Korean battery company LG Energy Solution is set to receive a $2.5 billion loan from the Energy Department to build battery cell factories for electric vehicles in three states.

The Energy Department says it has made a conditional commitment to lend the money to Ultium Cells.

The loan could help Ultium finance three lithium-ion battery plants planned in Michigan, Ohio and Tennessee, bolstering Biden administration efforts to promote electric vehicles and reduce dependence on China for critical components.

The director of Energy’s Loan Programs Office said Tuesday the loan would “help build a domestic supply chain to meet the growing demand for electric vehicles."

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