The site of the soon-to-be-completed Ultium Cells battery plant in Spring Hill buzzed Wednesday as Treasury Secretary Janet L. Yellen explained to workers how the Inflation Reduction Act and other policies of the Biden-Harris administration inspire historic investments. manufacturing.
When operational later this year, the large 2. 8 million-square-foot, $2600 million UItium Cells plant will produce all battery cells for Cadillac Lyriq production through neighboring General Motors, as well as GM’s long-term electric vehicle production.
Yellen told the small crowd gathered in a huge warehouse at the Ultium Cells facility that since the enactment of the Inflation Reduction Act six months ago, “. . . Clean energy corporations from top to bottom the supply chain have announced tens of billions of dollars in projects that will create thousands of good, good-paying jobs. “
One analysis, he said, “indicates that 2022 will be a record year for EV battery production in particular. Last year alone, more than $73 billion in planned projects were announced. “
GM Partnership: One Car Every Second: GM’s Spring Hill Plant Transforms Tennessee. Here’s how.
Background: Ultium Cells gets $2. 5 billion from DOE for 3 sites, adding Spring Hill
Ultium Cells, LLC has already won a $2. 5 billion loan from the US Department of Energy to finance the structure of new mobile lithium-ion battery production facilities in Ohio and Michigan, as well as Maury County. , Tennessee.
President Joe Biden has called for part of all U. S. auto sales to be sold in the U. S. GM expects to adopt an all-electric portfolio by 2040.
Yellen explained how the Inflation Reduction Act relocates battery production in addition to creating incentives. Lately, China produces 70% of batteries for electric vehicles, and the Inflation Reduction Act’s incentives for battery production will make the U. S. U. S. expand the national blank energy economy.
“The Inflation Reduction Act provides significant tax credits to stimulate investment and blank energy production. It should be noted that the law intentionally encourages local investment. It provides more incentives for corporations to invest in historic and low-income communities. And it also calls for employers to pay prevailing wages and employ apprentices to get all credits. This is a requirement that went into effect last month.
Tennessee is a major player in this transition to vacuum energy production. Ford is making a $5. 6 billion investment in Blue Oval City, a 4,100-acre battery and electric vehicle campus near Memphis, and Volkswagen has introduced a $33 million battery engineering lab to verify electric vehicle generation in Chattanooga.
In May, GM unveiled the all-electric Cadillac Lyriq at its Spring Hill plant.
Previous investment: Mobile battery maker Spring Hill to invest another $275 million and create 400 jobs
Yellen said her purpose in the Treasury is the effective implementation of the Inflation Reduction Act.
“To do this, we brought together a broad and varied set of stakeholders. And we are running temporarily to maximize the economic benefits of the law, while ensuring that there are effective safeguards in place for benefits to be delivered as intended. “She explained.
Expansion is expected year after year.
“Over the next year, I suspect activity will accelerate. Other concepts will become plans for America’s future. “
Melonee Hurt covers the expansion and progression of The Tennessean, which is from the USA Today – Tennessee network. Contact Melonee at mhurt@tennessean. com.