Lordstown Motors in talks with US government for loan for electric truck plant

Start-up Lordstown Motors Corp said on Wednesday it was in advanced talks with the US Department of Energy to secure a government loan as part of a program to help pay the costs of retooling a factory to build electric trucks.

In January 2020, Lordstown chief executive Steve Burns told Reuters the company was seeking a $ 200 million loan under the program for a former General Motors plant in northeast Ohio that ‘she had acquired in 2019.

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Burns said the loan would help us “make more (vehicles) once we get started” and “pull future vehicles a little further.” The company’s production plan does not require a government loan, but Burns said the loan “puts things on steroids.”

Burns refused to disclose the exact amount of the loan requested. “I think you should be thinking in terms of – it’s the same loan Tesla got,” Burns said.

In 2010, Tesla received a $ 465 million loan from the Department of Energy’s Advanced Technology Vehicles Manufacturing program, which also provided larger loans to Ford Motor Co and Nissan Motor Co to retrofit factories, but did not has funded no new loans since 2011.

Nissan and Tesla have repaid their loans. Ford is expected to repay the remainder of its loan by June 2022.

The Department of Energy did not respond to a request for comment.

A Lordstown spokesperson said the company filed an application in May.

“It’s quite an advanced stage and they don’t go into that level of diligence unless we’re a good candidate,” Burns said, saying it wouldn’t be finalized until President-elect Joe Biden did. starts on January 20.

Biden is a strong advocate for electric vehicles.

Burns reiterated that Lordstown is on track to start building electric pickup trucks in September.

Lordstown plans to pit its Endurance EV pickup against competitors from other newcomers such as Rivian and Nikola, as well as GM, Ford and Tesla.

Lordstown said Monday it has received more than 100,000 non-binding production reservations from commercial fleets for its electric truck.

This story was posted from an agency feed with no text editing. Only the title has been changed.

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