A Nevada manufacturer is getting a $2 billion loan from the U.S. Energy Department to increase production of key electric-vehicle battery components.
Redwood Materials says it will use the money to expand a plant near Reno that produces components from recycled and new sources. Redwood was founded by former Tesla executive J.B. Straubel.
The company said it plans to produce components at the plant to support manufacture of more than a million EVs annually.
The Biden administration has targeted increase North American sourcing and production of EV batteries in order to rely less on sources in Asia, particularly China.
Meanwhile, General Motors plans to invest in a Nevada lithium source in order to give it exclusive access for EV batteries. The deal is contingent on resolution of legal and environmental challenges to the mining project.