Dept. of Energy to loan $2.5 billion to GM and LG Energy Solution joint venture

The Department of Energy’s Advanced Technology Vehicles Manufacturing Program (ATVM) was created by Congress under the administration of former President George W. Bush and has been dormant since 2010, until now.

Congress established the ATVM Program and allotted $25 billion “to provide low-cost debt capital for fuel-efficient vehicle and eligible component manufacturing in the United States.”

Tesla was the last company to be awarded a loan ($465 million), which saved the electric vehicle company from an early death. Many other EV startups have turned to the department but to no avail.

Now, the ATVM intends to announce a $2.5 billion loan to a joint venture between General Motors and LG Energy Solution to assist in developing a new lithium-ion battery production plant, reports Reuters. The joint venture will use this loan to fund a new lithium-ion battery manufacturing facility.

The ATVM has also given Ford $5.9 billion to renovate and upgrade its facilities. Nissan also received $1.45 billion to produce the company’s Leaf electric car. Ford is still paying back the loan, but Nissan and Tesla are done and debt free with the ATVM.

Democrats are no longer concerned about providing government-backed loans to sustainable energy businesses. As part of his bipartisan infrastructure plan, President Joe Biden obtained $5 billion for EV charging, most of which will be paid out in loans to EV charging organizations.