GM to Receive a Whopping $2.5 Billion Govt-Funded Loan for EV Batteries

One of the first of its kind, GM secures a whopping $2.5 billion government loan for EV batteries. The Energy Department's Advanced Technology Vehicles Manufacturing Program (ATVMP) offered this loan after not giving any loan to an EV maker since 2010 and surprisingly, this loan is for building a plant for EV batteries.

President Biden also wants to see EVs represent if not more than 50% of the all-new sales by 2030 to cope with climate change which could be done easily with zero-emission vehicles.

According to Reuters, the Energy Department is confident to give a $2.5 billion loan to GM joint venture with LG calling it Ultium Cells and it is going to be the first-ever loan for making battery cells.

ATVMP offered loans to the EV sector and Tesla outperformed using those loans paying that loan completely back to ATVMP 9 years ahead of schedule in 2013 showing huge growth in the EV world.

This loan will help MG to cope with the high demand for EVs and to create more than 5,000 US jobs.

With this loan, MG will be building EV battery plants in Michigan, Ohio.