U.S. Energy Department to loan GM $2.5 billion for battery manufacturing
General Motors and LG Energy Solutions are constructing battery cell facilities with the help of the U.S. government.
It is taking the combined efforts of business and government to help facilitate a shift to cleaner, renewable energy. The latest efforts being made out of the United States is via the Energy Department which is set to loan $2.5 billion dollars to a venture between General Motors and LG Energy Solutions. The joint venture will focus on constructing facilities used to create battery cells.
Source: General Motors
Reported on by David Shepardson of Reuters on July 25, 2022, the U.S. Energy Department plans to loan $2.5 billion to the joint venture between General Motors and LG Energy Solutions, known as Ultium Cells LLC. The manufacturing plants will be in Ohio, Tennessee, and Michigan and will oversee the creation of lithium-ion cells and, according to Ultium, will create “more than 5,000 new high-tech jobs”.
Back in 2009, the U.S. government bailed out General Motors. A report from Reuters from 2014 notes that the government spent “about $50 billion” to bail out the company after its bankruptcy, which resulted in the government losing $11.2 billion dollars.
More recently, President Biden attended the GM Factory Zero inauguration in 2021 where he credited GM CEO Mary Barra for “electrifying the entire auto industry.” Fred Lambert of Eletrek wrote an op-ed about how this is quantifiably incorrect, noting that “GM backed Donald Trump’s effort to curtail California’s right to implement stricter emission standards,” standards that would force General Motors to create more electric vehicles.
While this loan of $2.5 billion means that GM and LG are investing more than $7 billion into the battery cell plants, it’s also important to note the track record of General Motors. The company has also dumped its stake in Ohio-based EV start-up, Lordstown Motors. It would appear that with this government loan, Lordstown Motors has some large competition coming to the area.
Though the push toward cleaner, more environmentally friendly energy and vehicles is needed, it does come at various costs. Hopefully the new manufacturing plants will see GM deliver more than the 26 EVs it shipped in Q4 2021. Be sure to keep it locked to Shacknews as we bring you the latest on electric vehicle technology.
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replySam Chandler posted a new article, U.S. Energy Department to loan GM $2.5 billion for battery manufacturing
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Oh, and on the subject of shitty EV track records from GM we can't forget EV1 and their horrible decision to partner with Nikola the founder of which has been indicted for fraud, not to mention the Lordstown stuff is pretty much completely dead in the water, having burned down their prototypes (literally).
BUT, this partnership is just expanding the technology that has already had some success. Hopefully LG will sort out their manufacturing issues and we won't have another complete recall.
I would say Tesla has the more powerful partnership with Panasonic and CATL. -
There’s got to be some kind of decoupling of American industry with China’s. Not a full separation of course, or anything like it, but some ability to manufacture staples in a way that the expertise is there to scale outward if there are geopolitical or logistical problems.
It’s hard to imagine exactly how this happens without *some* degree of the government picking winners and losers. -
The news about the U.S. government extending a $2.5 billion loan to GM is certainly noteworthy, and it brings to light the intricate relationship between the automotive industry and government support. The dynamics of such financial agreements can have far-reaching implications, not only for the companies involved but also for the broader economy.
It's interesting to see how economic forces and government interventions play a pivotal role in shaping the fate of major corporations. The intricacies of these financial dealings often lead to discussions about the balance between market forces and government influence.
Speaking of financial matters, I recently came across a review on https://triceloans.com/earnin-review/ that explores Earnin, a platform designed to address individual financial needs. In the context of the GM loan news, it's fascinating to consider how financial solutions at both the corporate and individual levels are interconnected and influenced by larger economic trends.
The GM loan saga raises questions about the long-term effects of such financial support on the automotive industry and the economy as a whole. It's a reminder of the delicate dance between private enterprises and government involvement, and how these interactions shape the economic landscape.
The financial world is undoubtedly complex, and news like this prompts us to think critically about the broader implications and the role of financial institutions in maintaining stability.
