The U.S. Department of Energy’s (DOE) Advanced Technology Vehicles Manufacturing’s (ATVM) loan program enables the domestic manufacturing of advanced technology vehicles and components. To date, the Department’s Loan Programs Office (LPO) has helped accelerate the resurgence of American auto manufacturing by issuing more than $8 billion in direct loans, which supported the production of more than 9 million cars and approximately 35,000 direct jobs across eight states.
Recently, DOE announced a conditional commitment for a $259 million loan to Alcoa Inc. This conditional commitment is the first issued by DOE under the ATVM loan program since Secretary Moniz announced a number of improvements to the program last year, and is the first step toward issuing a final loan to Alcoa. If finalized, the loan would support the company’s Alcoa, Tenn., manufacturing facility, where the company will produce high-strength aluminum for North American automakers looking to lightweight their vehicles.
According to U.S. Energy Secretary Ernest Moniz, the ATVM loan program can play an important role in helping to finance expanded domestic manufacturing of fuel-efficient technologies that will support the next generation of advanced vehicles.
The loan is good news for Alcoa, and for Tennessee. More than one-third of Tennessee manufacturing jobs are auto-related, and investment in advanced manufacturing is an important part of how our state will continue to attract good-paying jobs, said Senator Lamar Alexander.
The automotive sector in Tennessee represents what may be the single largest opportunity to expand the use of advanced energy technologies. The industry is looking to a number of these technologies to improve fuel efficiency demanded by government and consumers. Alcoa is an example of a company creating new materials that will make possible significant reductions of vehicle weight and improvements in gas mileage.
Alcoa estimates that its expanded production is expected to create an additional 200 permanent full-time jobs, in addition to 400 jobs at the peak of construction.
For more information on the ATVM loan program and Alcoa’s loan, click here.