The Clap A joint venture of General Motors and LG Energy Solution will receive $2.5 billion.
The Deets This funding is set to be used in the construction of new lithium-ion battery cell manufacturing facilities.
The deal is set to be closed in the coming months. The funding will be backed by the Advanced Technology Vehicles Manufacturing (ATVM) loan program. This will be their first loan since 2010.
Why is this necessary? Biden has set a goal of 50% of U.S. auto production by 2030 being electric or plug-in electric hybrid vehicles. The goal of this loan is to significantly speed up the process of increasing battery capacity.