US Department of Energy Provides $3 Trillion Financial Support to LG-GM Joint Battery Venture

[Asia Economy New York=Special Correspondent Joselgina] The U.S. Department of Energy is set to provide a total of $2.5 billion (3.28 trillion KRW) in financing to the joint electric vehicle battery venture between GM and LG Energy Solution.

According to major foreign media on the 25th (local time), the Department of Energy plans to soon announce support for a $2.5 billion loan to Ultium Cells, the joint company of GM and LG Energy Solution, for its factories in Ohio, Tennessee, and Michigan.

This funding will be covered by the federal government's advanced automotive manufacturing technology support program. This is the first time that this fund has been provided to an electric vehicle battery company. Previously, loans were provided to Tesla, Ford, Nissan, and others through this program, with the last support given in 2010.

Ultium stated in a press release, "The new investment will create 5,000 high-quality jobs in the United States," and added, "We look forward to collaborating with the Department of Energy for the next steps."