$710M in Loans for EV Tech Available in U.S.

The U.S. Energy Department (DoE) is making nearly $710 million in loans available to EV technology companies in addition to the $221.8 billion in potential loans for clean-energy projects from the Biden administration.

SK Siltron CSS is set to receive $544 million to expand a plant in Bay City, Michigan, producing high-power silicon carbide (SiC) wafers used in EVs for drivetrains, including inverters and electrical distribution systems. The loans are slated to create approximately 200 jobs in each of the About 200 jobs each of the construction and production sectors. 

American Battery Solutions received conditional approval for a $165.9 million loan to expand its EV battery pack assembly operations in Springboro, Ohio, and Lake Orion, Michigan—potentially creating 460 jobs.

So far, disbursed funds total $34.43 billion as of Dec. 31, 2023. Applications for $263.1 billion in loans were received by the end of January.

The U.S. Energy Department finalized in December 2022 a $2.5 billion loan to finance battery plant construction by a venture formed by General Motors GM.N and LG Energy Solutions. So far, Ford and battery partner SK On have not finalized a proposed $9.2 billion DoE loan to build three U.S. battery plants.

Energy Secretary Jennifer Granholm said the DoE will offer $10 billion in loans and another $2 billion in grants to help convert factories to build EVs. The agency is interested in “good risks,” such as projects aimed at producing critical minerals used in batteries and electronics, now cornered by China.