General Motors announced on Tuesday that battery production will begin in August at Ultium Cells LLC in Lordstown.
General Motors announced Tuesday that battery production will begin in August at Ultium Cells LLC in Lordstown, Ohio.
The information came as part of a letter to shareholders from GM CEO and President Mary Barra, under a summary of “What’s to come.”
Barra’s letter was released as GM reported a 40% drop in second-quarter net profit from a year ago, which was largely blamed on computer chip and parts shortages that reduced production and reduced sales by more than 15%.
The report came a day after the Department of Energy’s Loan Programs Office announced a conditional commitment to Ultium Cells for a $2.5 billion loan to help fund the construction of new cell manufacturing facilities. lithium-ion battery cells in Ohio, Tennessee and Michigan.
The three facilities are expected to create 6,000 construction jobs and 5,100 operations jobs when at full capacity.
The conditional commitment is offered through the Advanced Technology Vehicles Manufacturing program, which provides loans to support US manufacturing of light-duty vehicles, qualifying components and materials that improve fuel economy.
This would be the LPO’s first loan exclusively for a battery cell manufacturing project under ATVM.
By manufacturing Li-ion battery cells for electric vehicle batteries in the United States, Ultium Cells will supply GM, which plans to eliminate 100% of tailpipe emissions from its new light-duty vehicles by 2035.
GM plans to install the capacity to build one million electric vehicles in North America by the end of 2025.
The construction of these three plants also supports GM’s plan to make its global products and operations carbon neutral by 2040.
Although this conditional commitment demonstrates the Department’s intention to finance the project, several steps remain to be completed and certain conditions must be met before the Department grants a definitive loan.