U.S. finalizes $2.5b loan for GM and LG joint venture

The U.S. Energy department announced Monday that they have finalized a $2.5 billion low-cost loan to a joint venture of General Motors (NYSE: GM) and LG Energy Solution to help pay for three new lithium-ion battery cell manufacturing facilities.

The loan will help finance construction of new lithium-ion manufacturing facilities in Ohio, Tennessee, and Michigan, supporting 6,000 construction jobs and 5,100 operations jobs at the three plants. GM and LG Energy are considering an Indiana site for a fourth U.S. battery plant.

U.S. Energy Secretary Jennifer Granholm plans to tout the closing of the Ultium loan on a visit to Michigan on Monday with Labor Department Deputy Secretary Julie Su, Michigan Governor Gretchen Whitmer, United Auto Workers (UAW) President Ray Curry and other officials, automakers, and EV battery companies.

Shares of GM are up 0.57% in mid-day trading on Monday.

By Michael Elkins | [email protected]

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