Artist's concept of Ultium Cells battery plant in Spring Hill, Tennessee. (Photo: General Motors)

The Biden administration is finalizing a $2.5 billion loan to a GM joint venture to build three electric vehicle battery manufacturing facilities, the Energy Department said on Monday.

"The US Department of Energy (DOE), through its Loan Programs Office (LPO), today announced the closing of a $2.5 billion loan to Ultium Cells LLC to help finance the construction of new lithium-ion battery cell manufacturing facilities in Ohio, Tennessee, and Michigan," the release said, adding that "Ultium Cells, a joint venture between General Motors and LG Energy Solution, will manage battery cell production at the three facilities to address the growing US consumer demand for electric vehicles (EVs)."

Read: Electric Cars Will Dominate the Market in 2040

The project will secure more than 11,000 jobs, including 700 for United Auto Workers in the newly-organized Warren, Ohio facility, according to the release.

This would be the first loan given exclusively for a battery cell manufacturing project under the Advanced Technology Vehicles Manufacturing (ATVM) program, the release added, noting that the program has attracted over $104 billion in requested loans and loan guarantees since the end of October.

President Joe Biden's Bipartisan Infrastructure Law provides $7.5 billion for EV charging infrastructure and over $7 billion to build out the critical minerals supply chains needed for batteries, materials, components, and recycling.

Biden’s Inflation Reduction Act (IRA) has been directing investments and updates to the ATVM program by allocating $3 billion for direct loans' costs to remain available through September 30, 2028.

It is worth noting that despite the West's desperate attempts to increase their battery production, Asia still dominates the industry with 6 out of the top 10 companies being Chinese.

Chinese automaker BYD became the world's leading electric vehicle seller, pushing Elon Musk's Tesla to second place in the growing EV market.

BYD sold 638,157 electric or plug-in hybrid passenger vehicles in the first two quarters of 2022, company filings published on July 3 said, marking a 325% year-on-year increase.

South Korean President Yoon Suk-yeol asked Tesla founder Elon Musk to invest in the production of electric vehicles (EV) in South Korea, the Yonhap news agency reported in November.

Yoon had a virtual meeting with Musk, where he asked the billionaire entrepreneur to "invest in South Korea" amid Tesla's plans to build another electric car manufacturing gigafactory in Asia, the agency reported.

Musk said he considers South Korea as "one of the top investment candidate sites" and explained that before making a decision, a comprehensive review of the investment conditions of candidate countries in Asia, such as personnel, technology level, and production environment, will be conducted, Yonhap mentioned.

EV industry is booming