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GM's Joint EV Battery Plan with LG Receives DOE Support

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July 26, 2022—The U.S. Department of Energy on Monday announced it would provide $2.5 billion as part of a conditional agreement with General Motors and LG Energy Solutions to build several EV battery cell plants. 

The DOE declined to reveal what specific qualifications must be met for the 50-50 venture between GM and LG to receive the loan, and according to a report from the Detroit Free Press, a DOE blog post said issuance of that loan is still not guaranteed.

"While this conditional commitment demonstrates the Department’s intent to finance the project, several steps remain, and certain conditions must be satisfied before the Department issues a final loan," the post said.

GM spokesman Jim Cain said in an email to the Free Press that even though the two companies have committed significant resources to the venture, a loan would greatly ease the process of getting the project off the ground.

"Assuming the loan is approved, it would have the effect of lowering the amount of capital the joint venture partners would need to fund directly," Cain said. "Ultium Cells will repay the loans with proceeds earned by selling its cells to GM."

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