Advanced Technology Vehicles Manufacturing Loan Program
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Advanced Technology Vehicles Manufacturing (ATVM) Loan Program is a $25 billion direct loan program funded by
Background and criteria
The loan program was authorized under section 136 of the
It has been speculated that at least two of the
In November 2008, the auto industry began lobbying for the $25 billion to be loaned immediately, as well as another $25 billion to be loaned later to cover retirees health care costs.[2]
As originally worded, the program was applicable only to four-wheeled passenger vehicles. In October 2009, a bill sponsored by California Representatives Brian Bilbray and Adam Schiff was passed extending the program's coverage to include high mileage (equivalent to 75 mpg‑US or 3.1 L/100 km or 90 mpg‑imp ) two- and three-wheeled vehicles.[5]
DOE's Alternative Vehicle Technologies Awards
The U.S. Department of Energy (DOE) announced in December 2008 the selection of six cost-shared research projects for the development and demonstration of alternative vehicle technology projects totaling a DOE investment of up to $14.55 million over three years, subject to annual appropriations. Private sector contributions will further increase the financial investment for a total of up to $29.3 million. The selections announced are part of DOE’s continuing work to develop high efficiency vehicle technologies and are not part of the recently announced $25 billion Advanced Technology Vehicles Manufacturing Loan Program. These projects were selected under three diverse topic areas:
Conditional loans
Overview
USDOE announced in 2009 $8.4 billion in conditional loan agreements for
Ford
Ford Motor Company will receive its loans through 2011, using the funds to upgrade its engine plants in Dearborn, Michigan; Cleveland, Ohio; and
In 2023, the Program approved a $9.2 billion loan for Blue Oval City, a battery plant by Ford and SK Innovation.[15]
Nissan
Nissan aims to manufacture a cost-competitive electric vehicle with a lithium-ion battery pack in Smyrna, Tennessee, and plans to eventually reach a production capacity of 150,000 vehicles per year.[9] The Nissan Leaf is produced at Nissan's Smyrna assembly plant since 2013, along with cells for its batteries.[16] Nissan repaid the loan in 2017.[11]
Tesla
Tesla Motors will use its funding (US$465 million) to finance a California-based manufacturing facility for the Tesla Model S sedan, an all-electric sedan that can be recharged at a conventional 120-volt or 240-volt outlet. Production will begin in 2011 and ramp up to 20,000 vehicles per year by the end of 2013.[9][17][18] Tesla repaid the loan in May 2013, and was the first car company to have fully repaid the government, while Ford, Nissan and Fisker had not up to that moment.[19]
Fisker Automotive
The fourth conditional commitment that the Department of Energy has entered into under the ATVM Loan program is a $528.7 million loan for
Syrah Technologies
In 2022, the program granted $107 million to Syrah Technologies to assist its graphite-based active anode material Vidalia Facility in Louisiana. The grant was the first in over 10 years.[22]
Ultium Cells LLC
The joint venture of General Motors and LG Energy Solution, Ultium Cells LLC, won a $2.5 billion loan in December 2022. The company intends to use the loan towards setting up three US factories in the states of Ohio, Tennessee, and Michigan, to make its lithium-ion battery systems.[23]
Redwood Materials
Redwood Materials secured a $2 billion conditional loan in February 2023. The company which relies primarily on Asia for importing essential components to make EV batteries said it would use the funds to build a supply base in the US and expand operations by building a facility in Charleston, South Carolina.[12]
Unsuccessful applications
About 108 requests were made to the program by 2010, but few were approved. Many of the companies which were denied loans have since gone out of business. Among the applicants denied were:[1]
- A loan request under this program was denied for Carbon Motors Corporation in March 2012 after the latter had spent 2 years prior addressing the DOE's concerns.[24]
- Aptera Motors' initial application was denied because its product was a three-wheeled vehicle; the wording on the program was modified to allow high-mileage three-wheelers and Aptera reapplied, however the company went out of business before the DOE responded to their second application.
- Brammo asked for $45 million, application was rejected.
- Local Motors' Local Motors initial application (filed in 2009) was rejected, company said to be working on resubmission.
- Bright Automotive, who filed their application in 2008, went out of business in March 2012 after waiting 4 years for the DOE to respond and being unable to sustain continued operations.[24]
- Coda Automotive, ultimately went into Chapter 11 bankruptcy on May 1, 2013.[25]
- XP Vehicles - sued the U.S. Department of Energy [26][needs update]
References
- ^ a b Schreiber, Ronnie (18 May 2013). "Has the Dept of Energy's Advanced Technology Vehicle Manufacturing Program Been a Failure? Not Really". The Truth About Cars. Archived from the original on 28 September 2015. Retrieved 27 November 2016.
- ^ a b c "Why $25 billion bailout may not help strapped automakers". Csmonitor.com. 2008-11-14. Retrieved 2014-08-21.
- ^ "Fact Sheet: Advanced Technology Vehicles Manufacturing Loan Program" (PDF). Atvmloan.energy.gov. Archived from the original (PDF) on 2010-05-27. Retrieved 2014-08-21.
- ^ Amadeo, Kimberly (25 November 2016). "Auto Industry Bailout (GM, Ford, Chrysler)". The Balance. Archived from the original on 28 November 2016. Retrieved 28 November 2016.
- ^ Sam Abuelsamid (2009-10-30). "President signs bill expanding ATVM program to three wheelers". Green.autoblog.com. Retrieved 2014-08-21.
- ^ "DOE Announces up to $29.3 Million in Projects for Research, Development, and Demonstration of Alternative Vehicle Technologies". United States Department of Energy. 2008-12-03. Archived from the original on 2011-07-21. Retrieved 2011-02-10.
- ^ a b c Bill Canis, Brent D. Yacobucci. "The Advanced Technology Vehicles Manufacturing (ATVM) Loan Program: Status and Issues" page 11-13. 7-5700 www.crs.gov R42064. Congressional Research Service, January 15, 2015.
- ^ "Department of Energy: Advanced Technology Vehicles Manufacturing (ATVM) Program". Taxpayers for Common Sense. 29 August 2013. Archived from the original on 22 April 2016. Retrieved 27 November 2016.
- ^ a b c d "DOE Awards $8 Billion in Loans for Advanced Vehicle Technologies". Energy Efficiency and Renewable Energy news. United States Department of Energy. 2009-06-24. Archived from the original on 28 May 2010. Retrieved 2010-04-25.
- ^ LeSage, Jon (7 April 2014). "Advanced Technology Vehicle Manufacturing". Green Auto Market. Retrieved 27 November 2016.
- ^ a b c d Berman, Bradley (12 February 2020). "Trump budget kills loan program sought by EV-maker Lordstown Motors". Electrek.
- ^ a b Ohnsman, Alan (9 February 2023). "Redwood Wins $2 Billion Federal Loan To Scale Up Production Of Battery Materials For Electric Cars". Forbes.
- ^ "Automakers' Report Card: Who Still Owes Taxpayers Money? The Answer Might Surprise You". Forbes. 29 August 2012. Retrieved 27 November 2016.
- ^ Balaskovitz, Andy (21 May 2014). "Fuel-efficiency loan program looking beyond the Big Three". Midwest Energy News. Retrieved 27 November 2016.
- ^ "LPO Announces Conditional Commitment for Loan to BlueOval SK to Further Expand U.S. EV Battery Manufacturing Capacity". Energy.gov. 22 June 2023. Archived from the original on 26 June 2023.
- ^ Driving Economic Growth: ADVANCED TECHNOLOGY VEHICLES MANUFACTURING January 2016
- ^ "Tesla gets long-awaited government loan". The Business Journals. Pacific Business news. 2009-06-24. Archived from the original on 2016-05-05. Retrieved 2015-04-12.
- ^ "Tesla Motors Bags Federal Cash". Driving Today. 2009-07-17. Archived from the original on 2016-05-28. Retrieved 2009-08-08.
- ^ Cole, Jay (2013-05-22). "Tesla Repays Entire DoE Loan, Taxpayers MAKE $12 Million on the Deal". Inside EVs. Archived from the original on 2016-05-06. Retrieved 2013-05-23.
- ^ "US Energy Secretary Chu Announces $528 Million Loan for Advanced Vehicle Technology for Fisker Automotive". United States Department of Energy. 2009-09-22. Archived from the original on 2011-10-15. Retrieved 2011-02-10.
- ^ Keane, Angela Greiling (November 23, 2013). "Fisker to Sell Assets in Bankruptcy at $139 Million Lossn". Bloomberg. Retrieved November 23, 2013.
- ^ "DOE loans office commits over US$600 million to Utah hydrogen hub & Louisiana graphite facility". Energy Storage News. 27 April 2022.
- ^ Shepardson, David (12 December 2022). "U.S. finalizes $2.5 billion loan to GM, LG battery joint venture". Reuters.
- ^ a b "Department of Energy says 'no' to Carbon Motors' loan request for police car". Fox News. 7 March 2012. Archived from the original on 23 June 2012. Retrieved 5 June 2012.
- ^ "Coda Automative Chapter 11 Petition" (PDF). PacerMonitor. PacerMonitor. 2013-05-01. Retrieved 2016-06-10.
- ^ "Meet the 'Inflatable Car' Inventor Suing the U.S. For $675 Million". 15 May 2013.
External links
- Advanced Technology Vehicles Manufacturing Loan Program- Official website
- "Conditional commitment letter by and between United States Department of Energy and Fisker Automotive, Inc" (PDF). September 18, 2009. Archived from the original (PDF) on June 13, 2010.
- "Conditional commitment letter by and between United States Department of Energy and Tesla Motors, Inc" (PDF). June 23, 2009. Archived from the original (PDF) on June 13, 2010.
- "Conditional commitment letter by and between United States Department of Energy and Tesla Motors, Inc". June 23, 2013.