US announces $710 million in loans for EV technology firms

U.S. Department of Energy (DOE) on Thursday committed around $710 million in loans for Electric Vehicle (EV) technologies manufacturing ventures.

The loan was distributed under the Advanced Technology Vehicles Manufacturing (ATVM) Loan Program administered by the DOE’s Loan Programs Office (LPO).

Over the past two months, the office has received financing applications of $80 billion, Jigar Shah, Director of the Energy Department. The department has distributed $34.43 billion from the applications received for a total of $263.1 million in loans as of January 2024.

A large chunk of these loans will go to South Korea’s SK Siltron which could receive $544 million to expand its operations in Bay City, Michigan. The plant was opened in 2022 and supported by Michigan Economic Development Cooperation.

SK Siltron makes silicon carbide (SIC) used in EVs. These wafers are energy efficient and can handle higher energy and heat management than normal silicon. This component could expand the driving range of an EV by 5% to 10%.

The latest expansion would add 200 jobs in production and construction at SK Siltron’s plant. The company is planning to grow an estimated total of 450 workers at the time of the completion in 2027.

The plant will use technologies developed at SK Siltron’s Auburn plant to create high-quality wafers to support the EV market.

American Battery Solution is the second largest firm to get a $165.9 million loan. This will be used to enhance its EV battery pack assembly line in Springboro, Ohio, and Lake Orion, Michigan. These two factors house up to 460 employees and workers.

Amid this latest approval, many of the big players are still waiting for the department to grant their financing and set up new facilities for EVs and clean energy technologies inside the U.S.

(source – Sksiltroncss)