LG Energy Solution-GM Joint Venture 'Ultium Cells' Repays $1.8 Billion U.S. Loan Early

Eco-Friendly Vehicle Loan Support Program
Loan Support Approved in 2022
Used for Construction of Battery Cell Production Plants

Ultium Cells, the battery joint venture between LG Energy Solution and General Motors (GM), has repaid a $1.8 billion (2.5147 trillion won) loan from the U.S. government seven years ahead of schedule.

Local employees are inspecting the battery production status at Ultium Cells' second plant. Provided by LG Energy Solution

On May 15, LG Energy Solution announced that the U.S. Department of Energy (DOE) recently approved a contract for the early repayment of Ultium Cells' $1.8 billion loan.

The loan Ultium Cells received was the first case of support for a battery manufacturing project under the DOE's Advanced Technology Vehicles Manufacturing (ATVM) program. The ATVM is a loan support program for eco-friendly vehicles under the Energy Independence and Security Act.

In November 2022, the DOE decided to provide Ultium Cells with up to $2.5 billion in loans at U.S. Treasury rates.

Ultium Cells borrowed $1.8 billion of this amount, using it for the construction of battery cell production plants located in Ohio and Tennessee.

With this early repayment, Ultium Cells has secured financial flexibility and gained autonomy from government regulations and obligations associated with the loan.