LORDSTOWN, Ohio (WJW) — A $2.5 billion loan was approved by the U.S. Department of Energy for Ultium Cells LLC facilities in Ohio, Tennessee and Michigan.

General Motors and LG Energy Solution have come together to make Ultium Cells to manage battery cell production. This will address the growing U.S. consumer demand for electric vehicles, according to the U.S. DOE.

The loan will help finance the construction of new lithium-ion battery cell manufacturing facilities in the three states, according to the U.S. DOE.

“This loan will jumpstart the domestic battery cell production needed to reduce our reliance on other countries to meet increased demand and support President Biden’s goals of widespread EV adoption and cutting carbon pollution produced by gas-powered vehicles,” U.S. Secretary of Energy Jennifer M. Granholm said.

The project is expected to create more than 11,000 good-paying jobs across the three states, including more than 3,700 jobs in Ohio, according to the U.S. DOE.

“Investing in American production and Ohio workers is part of the work we are doing to put in place a new pro-American, pro-worker industrial policy,” U.S. Senator Sherrod Brown (OH) said.

“Public-private partnerships are a way of linking private sector technologies and innovations with government resources, which ultimately leads to economic growth. I’ve been a huge proponent of these programs for my entire tenure in Congress,” U.S. Representative Tim Ryan (OH-13) said.

Earlier Advanced Technology Vehicles Manufacturing loans have helped support Ohio’s auto industry with a $5.9 billion loan to Ford in 2009 that supported the upgrade of facilities in Brook Park, Cincinnati and Lima. The loan was fully repaid in June 2022.