US DOE offers a conditional loan of $165.9 million to American Battery Solutions

News
Policy & Regulation

The loan will help enable ABS’ production of approximately 4.2 GWh of Li-ion battery packs per annum at full capacity by 2026

Source: Getty Images/Andrii Yalanskyi

The US Energy Department's (US DOE's) Loan Programs Office (LPO) has offered a conditional loan of $165.9 million to American Battery Solutions (ABS) to help finance the expansion of an advanced battery-pack assembly facility, the DOE announced Feb. 22. The batteries produced at ABS’ Springboro, Ohio, and Lake Orion, Mich., facilities are slated to support light-, medium- and heavy-duty electric vehicle and industrial equipment applications.

According to the press note, if finalized, the loan will help enable ABS’ production of approximately 4.2 GWh of lithium-ion (Li-ion) battery packs per annum at full capacity by 2026.

ABS plans to expand its Li-ion battery-pack assembly capacity to capitalize on rapidly growing demand from the EV market. The project will finance the construction of four high-voltage (HV) and four low-voltage (LV) battery-pack assembly lines in Springboro. ABS plans to upgrade its existing battery-cell testing and quality control equipment at its existing facility in Lake Orion.

The company estimates that at that level of battery-production capacity, the project could support enough EVs to displace approximately 71,000 metric tons of CO2 emissions each year from gasoline-powered vehicles.

Upon completion, the project is expected to create 460 high-quality operational jobs in Springboro, Lake Orion and surrounding communities.

Notably, the project is aligned with the US government’s Investing in America agenda, which aims to onshore and reshore domestic manufacturing of technologies that are critical to achieving the clean energy and transportation future.

“Onshoring battery manufacturing is critical to reducing America’s reliance on our economic competitors, like China, which currently dominates the industry and supplies many American companies with materials to resell non-domestically produced batteries,” the DOE said in the press note.

It further added that LPO, leveraging additional loan authority provided by the US government’s Inflation Reduction Act, is spurring hundreds of billions in new private-sector investments that are boosting the nation’s competitiveness, strengthening supply chains and creating good-paying jobs in communities across the nation.

preload preload preload preload preload preload