Lordstown Motors moves to next phase for Department of Energy loan – Business Journal Daily

Update at 4 p.m.: Statements by United States Senator Sherrod Brown and United States Representative Tim Ryan
LORDSTOWN, Ohio – US Department of Energy Invited Lordstown Motors Corp. initiate a due diligence process to obtain funding from the ministry’s advanced technology vehicle loan program.

The department’s invitation does not guarantee that Lordstown Motors will receive a loan from the program, the company said in a statement Wednesday morning.

“As we said before, our business model is not dependent on getting the ATVM loan,” said Steve Burns, CEO of Lordstown Motors. “However, the funds would allow us to increase production capacity to bring Lordstown Endurance to more customers more quickly, while advancing research and development for future vehicles.”

Lordstown Motors submitted its first application to the program in May 2020.

The loan fund, which has been used by automakers including Ford, Nissan and Tesla, was established in 2007 and is authorized to lend $ 17.7 billion.

Lordstown Motors has been in discussion with the Ministry of Energy for more than a year concerning a possible loan.

Last year, U.S. Senator Sherrod Brown, D-Ohio, and U.S. Representatives Tim Ryan, D-13 Ohio, and Marcia Fudge, D-11 Ohio, said the company requested a loan in a letter. urging congressional officials to maintain the program.

“I am pleased that Lordstown Motors is getting closer to securing a loan for the manufacture of advanced technology vehicles,” Senator Brown said in a statement Wednesday. “This funding would boost production and help support the valley’s economy, which is why I encouraged the Department of Energy to approve Lordstown Motor’s request and spoke out against Republican cuts to the ATVM program. . “

Ryan applauded Lordstown Motors and Burns and said he was ready to help.

“I am proud to have successfully fought to protect the ATVM loan program this year after the Trump White House’s repeated attempts to eliminate it,” Ryan said in a statement. “This program could prove crucial in helping more electric vehicle companies, like Lordstown Motors, create jobs and lead the future of manufacturing here in the valley and across the country.”

The electric vehicle startup, which makes the Endurance pickup truck, purchased the former General Motors Lordstown complex in 2019 and announced plans to establish its operations there.

Related coverage

January 11, 2021: Lordstown Motors places 100,000 pre-orders

January 8, 2021: Lordstown Motors Secures “Large” Order From Mike Albert Fleet Solutions

December 28, 2020: Lordstown Motors secures new order for 14,000 pickup trucks

January 23, 2020: Lordstown Motors considers loan from Department of Energy

Copyright 2021 The Business Journal, Youngstown, Ohio.

About Paul Cox

Check Also

Orestone Mining Increases Private Placement Funding to $ 1.4 Million

Vancouver, British Columbia – (Newsfile Corp. – March 1, 2021) – Orestone Mining Corp. (TSXV: …

Leave a Reply

Your email address will not be published.