U S Announces $710 Million in Loans for Electric Vehicle Technology Initiatives

by bollywoodfever · 22/02/2024

U S Announces $710 Million in Loans for Electric Vehicle Technology Initiatives

Washington, Feb 22 (BollywoodFever): The U.S. Energy Department announced preliminary approval for nearly $710 million in loans for electric vehicle (EV) technology manufacturing initiatives, with $221.8 billion still available in loan capacity for clean-energy projects under the Biden administration.

SK Siltron CSS, a South Korean company, is set to receive $544 million to expand a plant in Bay City, Michigan, which manufactures high-power silicon carbide wafers crucial for EV drivetrains, inverters, and electrical distribution systems.

This expansion could potentially create around 200 jobs each in the construction and production sectors, according to the department.

SK Siltron CSS CEO Jianwei Dong emphasized the project’s importance in fortifying the domestic semiconductor manufacturing supply chain in the United States.

Separately, American Battery Solutions received conditional approval for a $165.9 million loan to enhance its EV battery pack assembly operations in Springboro, Ohio, and Lake Orion, Michigan. These facilities could collectively employ up to 460 individuals.

Jigar Shah, director of the energy department’s loan program office, stated that there has been a significant influx of applications, totaling $80 billion in financing over the past two months from highly experienced players.

As of December 31, 2023, the department has disbursed $34.43 billion, with applications for loans totaling $263.1 billion as of the end of January.

However, the realization of these projects and job opportunities hinges on companies finalizing the loans and deploying the funds.

While the U.S. Energy Department approved a $2.5 billion loan in December 2022 for battery plant construction by a venture between General Motors (GM.N) and LG Energy Solution, a proposed $9.2 billion energy department loan for Ford and battery partner SK On to build three U.S. battery plants is yet to be finalized.