DOE signals intention to approve $2 billion in loan commitments for EV battery production

The U.S. Department of Energy’s (DOE) Loan Program Office (LPO) has announced a conditional loan commitment of $2 billion to Redwood Materials for the construction and expansion of a battery materials campus in McCarran, Nevada. If approved, the project would support production in a fully closed-loop lithium-ion battery manufacturing process by recycling end-of-life battery and production scrap and remanufacturing it.

The agency says this project would mark a step toward meeting the Biden administration’s target of making half of all new vehicles sold in 2030 zero-emissions vehicles, including battery electric, plug-in hybrid electric, or fuel cell electric vehicles.

The onshoring the production of anode copper foil and cathode active material, the two most critical and valuable components of lithium-ion battery manufacturing for EVs, would help build America’s energy independence and help ensure the long-term success and sustainability of an advanced battery manufacturing industry in America, according to the LPO.

At full production capacity, the project’s anode copper foil and cathode active material output is anticipated to support the production of more than 1 million EVs per year, reducing annual gasoline consumption by over 395 million gallons and avoiding more than 3.5 million tons of CO2 emissions each year.

While DOE has indicated its intent to finance the project, several steps remain, and certain conditions must be satisfied before the department issues a final loan.