US puts up $710 million to fund Battery EV projects.

TLDR:

• The U.S. Energy Department has approved nearly $710 million in loans for electric vehicle (EV) technology manufacturing ventures.
• SK Siltron CSS and American Battery Solutions are set to receive loans to expand their operations in Michigan and Ohio, creating hundreds of jobs.

The U.S. Energy Department has given preliminary approval for loans totaling $710 million to support Battery EV technology projects. SK Siltron CSS, a South Korean company, is set to receive $544 million to expand a plant in Michigan that produces silicon carbide wafers used in electric vehicles. This expansion could create about 200 jobs in construction and production sectors. Additionally, American Battery Solutions has received conditional approval for a $165.9 million loan to expand its EV battery pack assembly operations in Ohio and Michigan, potentially employing up to 460 people.

The Energy Department has received applications for a total of $263.1 billion in loans, indicating a strong interest in funding clean-energy projects. The Biden administration still has $221.8 billion in loan capacity available to support such initiatives. Jigar Shah, the director of the energy department’s loan program office, stated that his office has seen a surge in applications from significant players in the industry.

The government’s focus on supporting critical minerals used in batteries and electronics, in which China currently dominates, is evident. President Joe Biden has emphasized the importance of domestic semiconductor manufacturing and has pledged financial support to boost the supply chain in the United States. The projects and jobs depend on companies closing the loans and deploying the funds, illustrating a significant step towards a resilient and robust supply chain in the U.S.

Overall, the U.S. government is actively investing in Battery EV technology projects to drive innovation, create jobs, and enhance domestic manufacturing capabilities, aligning with its clean-energy goals and efforts to reduce reliance on foreign supply chains.