Lordstown Motors Moves to Next Phase for Department of Energy Loan
Updated 4 p.m.: Statements from U.S. Sen. Sherrod Brown and U.S. Rep. Tim Ryan
LORDSTOWN, Ohio – The U.S. Department of Energy invited Lordstown Motors Corp. to begin a due diligence process toward securing funding from the department’s Advanced Technology Vehicles Manufacturing Loan program.
The department’s invitation is not an assurance that Lordstown Motors will receive a loan from the program, the company said in a statement Wednesday morning.
“As we’ve said before, our business model is not reliant on receiving the ATVM loan,” Lordstown Motors CEO Steve Burns said. “The funds would, however, enable us to increase production capacity to get the Lordstown Endurance to more customers more quickly, while simultaneously advancing research and development of future vehicles.”
Lordstown Motors submitted its initial application to the program in May 2020.
The loan fund, which has been used by automakers including Ford, Nissan and Tesla, was created in 2007 and is authorized to loan $17.7 billion.
Lordstown Motors has been in discussions with the Department of Energy for more than a year regarding a potential loan.
Last year, U.S. Sen. Sherrod Brown, D-Ohio, and U.S. Reps. Tim Ryan, D-13 Ohio, and Marcia fudge, D-11 Ohio, said the company had applied for a loan in a letter urging congressional appropriators to maintain the program.
“I’m glad Lordstown Motors is advancing closer toward securing an Advanced Technology Vehicles Manufacturing Loan,” Sen. Brown said in a statement Wednesday. “This funding would boost production and help support the Valley’s economy, which is why I’ve encouraged the Department of Energy to approve Lordstown Motor’s application and have spoken out against Republican cuts to the ATVM program.”
Ryan applauded Lordstown Motors and Burns, and said he stands ready to assist.
“I’m proud to have successfully fought to protect the ATVM loan program this year after repeated attempts from the Trump White House to eliminate it,” Ryan said in a statement. “This program could end up being crucial to 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 is manufacturing the Endurance pickup truck, purchased the former General Motors Lordstown Complex in 2019 and announced plans to base its operations there.
Jan. 11, 2021: Lordstown Motors Passes 100,000 Preorders
Dec. 28, 2020: Lordstown Motors Gets New Order for 14,000 Pickups
Jan. 23, 2020: Lordstown Motors Considers Department of Energy Loan
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