The U.S. Department of Energy (DOE), through its Loan Programs Office (LPO), has announced the closing of a $2.5 billion loan to Ultium Cells LLC to help finance the construction of new lithium-ion battery cell manufacturing facilities in Ohio, Tennessee and Michigan.

Ultium Cells, a joint venture between General Motors and LG Energy Solution, will manage battery cell production at the three facilities. In October, President Biden launched the American Battery Materials Initiative alongside $2.8 billion in grants from the DOE to build out the battery mineral and material supply chain.