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{{Update|reason=There are several future-looking statements about events that are already in the past, and should be updated to reflect what actually happened|date=May 2022}}

[[File:09 06 24 chu ford loans.jpg|thumbnail|right|Energy Secretary [[Steven Chu|Chu]] announced the loans to Ford employees in Detroit.]]

'''Advanced Technology Vehicles Manufacturing (ATVM) Loan Program''' is a $25 billion direct loan program funded by [[George W. Bush's second term as President of the United States|Congress in fall 2008]] to provide debt capital to the [[Automobile industry in the United States|U.S. automotive industry]] for the purpose of funding projects that help vehicles manufactured in the U.S. meet higher mileage requirements and [[United States energy independence|lessen U.S. dependence on foreign oil]]. Of the 108 requests made, 5 were approved to receive $8.4 billion, with the majority of that amount under repayment.<ref name= Schreiber/>

== Background and criteria ==
The loan program was authorized under section 136 of the [[Energy Independence and Security Act of 2007]], which provided the program with $25 billion in loan authority, supported by a $7.5 billion appropriation to fund the credit subsidy, or the 30% risk profile expected for projects of this type. To qualify, automakers and eligible component manufacturers must promise to increase the fuel economy of their products by 25% over the average fuel economy of similar 2005 models, and apply the loans to future investments "reasonably related to the reequipping, expanding, or establishing a manufacturing facility in the U.S." In distributing the loans the DOE may decide which technologies it believes are most promising and deserving of assistance. Loan recipients must also be "financially viable" for the length of the loan.<ref name="csmonitor.com">{{cite web|url=http://www.csmonitor.com/2008/1114/p25s07-usec.html |title=Why $25 billion bailout may not help strapped automakers |publisher=Csmonitor.com |date=2008-11-14 |access-date=2014-08-21}}</ref> Given 60 days by congressional statute to issue an interim final rule, the [[United States Department of Energy|Department of Energy]] (DOE),<ref>{{cite web|url=http://www.atvmloan.energy.gov/print/FactSheet.pdf |title=Fact Sheet: Advanced Technology Vehicles Manufacturing Loan Program |publisher=Atvmloan.energy.gov |access-date=2014-08-21 |url-status=dead |archive-url=https://web.archive.org/web/20100527092753/http://www.atvmloan.energy.gov/print/FactSheet.pdf |archive-date=2010-05-27 }}</ref> responsible for overseeing the program, finalized the rule 36 days later on November 5, 2008 (compared to 18 months usually needed for such rule making). This program is unrelated to the [[United States Treasury Department]]'s [[Troubled Asset Relief Program]] (TARP) which has been providing [[bailout]] funding to two of the big three U.S. automakers to reduce the [[effects of the 2008–10 automotive industry crisis on the United States]]. The two programs were enacted during the [[Automotive industry crisis of 2008–10]], but with different purposes.<ref name=Amadeo>{{cite web|url= https://www.thebalance.com/auto-industry-bailout-gm-ford-chrysler-3305670 |archive-url= https://web.archive.org/web/20161128000821/https://www.thebalance.com/auto-industry-bailout-gm-ford-chrysler-3305670 |title=Auto Industry Bailout (GM, Ford, Chrysler) |first= Kimberly |last=Amadeo |date=25 November 2016 |archive-date=28 November 2016|work=The Balance|access-date=28 November 2016|url-status=live}}</ref>

It has been speculated that at least two of the [[Big Three automobile manufacturers#United States|Big Three U.S. automobile manufacturers]] may not be able to qualify for this program because of its fuel economy and financial solvency requirements.<ref name="csmonitor.com"/>

In November 2008, the auto industry began lobbying for the $25 billion to be loaned immediately, as well as another $25 billion to be loaned later to cover retirees [[health care]] costs.<ref name="csmonitor.com"/>

As originally worded, the program was applicable only to four-wheeled passenger vehicles. In October 2009, a bill sponsored by California Representatives [[Brian Bilbray]] and [[Adam Schiff]] was passed extending the program's coverage to include high mileage (equivalent to {{cvt|75|mpgUS|disp=or}} ) two- and three-wheeled vehicles.<ref>{{cite web|author= Sam Abuelsamid |url=http://green.autoblog.com/2009/10/30/president-signs-bill-expanding-atvm-program-to-three-wheelers/ |title=President signs bill expanding ATVM program to three wheelers |publisher=Green.autoblog.com |date=2009-10-30 |access-date=2014-08-21}}</ref>

== DOE's Alternative Vehicle Technologies Awards ==
The U.S. Department of Energy (DOE) announced in December 2008 the selection of six cost-shared research projects for the development and demonstration of alternative vehicle technology projects totaling a DOE investment of up to $14.55 million over three years, subject to annual appropriations. Private sector contributions will further increase the financial investment for a total of up to $29.3 million. The selections announced are part of DOE’s continuing work to develop high efficiency vehicle technologies and are not part of the recently announced $25 billion Advanced Technology Vehicles Manufacturing Loan Program. These projects were selected under three diverse topic areas: [[lithium-ion battery]] materials and manufacturing ([[3M Company]] for developing advanced anode; [[BASF]] Catalyst for domestic production of low cost [[cathode]] materials and [[FMC Corporation]] for scaling up production of stabilized lithium metal powder for high energy cathodes); [[thermoelectric]] [[heating, ventilation and air conditioning]] (TE HVAC system); and [[aerodynamic]] heavy-duty truck trailers ([[Navistar International Corporation]]).<ref>{{cite web |url=https://www.energy.gov/news/archives/6768.htm |title=DOE Announces up to $29.3 Million in Projects for Research, Development, and Demonstration of Alternative Vehicle Technologies |date=2008-12-03 |publisher=[[United States Department of Energy]] |access-date=2011-02-10 |archive-url=https://web.archive.org/web/20110721035625/http://www.energy.gov/news/archives/6768.htm |archive-date=2011-07-21 |url-status=dead }}</ref>

== Conditional loans ==

=== Overview ===
{{Pie chart
| thumb = right
| caption = ATVM budget<ref name=canis>Bill Canis, Brent D. Yacobucci. "[https://www.fas.org/sgp/crs/misc/R42064.pdf The Advanced Technology Vehicles Manufacturing (ATVM) Loan Program: Status and Issues]" page 11-13. 7-5700 www.crs.gov R42064. ''[[Congressional Research Service]]'', January 15, 2015.</ref>
| other =
| label1 =$5,907 M September 2009: [[Ford Motor Company|Ford]]
| value1 =24
| color1 =blue
| label2 = $1,448 M January 2010: [[Nissan]]
| value2 =6
| color2 =red
| label3 =$529 M April 2010: [[Fisker Automotive|Fisker]]
| value3 =2
| color3 =silver
| label4 =$465 M January 2010: [[Tesla Motors|Tesla]]
| value4 =2
| color4 =brown
| label5 = $50 M March 2011: [[Vehicle Production Group]]
| value5 =1
| color5 =lightblue
| label6 = $16,600 M 2015: Remaining authority
| value6 =66
| color6 =white
}}
USDOE announced in 2009 $8.4 billion in conditional loan agreements for [[Ford Motor Company]]; [[Nissan North America]], Inc.; [[Tesla Motors]], Inc. and [[Fisker Automotive]] to fund the development of advanced vehicle technologies. Additionally, DOE has spent approximately $3.3 billion on federal credit subsidies costs in order to secure the loans for the few approved companies.<ref name=canis/><ref>{{cite web|url=http://www.taxpayer.net/library/article/department-of-energy-advanced-technology-vehicles-manufacturing-atvm-progra |archive-url= https://web.archive.org/web/20160422165636/http://www.taxpayer.net/library/article/department-of-energy-advanced-technology-vehicles-manufacturing-atvm-progra |title=Department of Energy: Advanced Technology Vehicles Manufacturing (ATVM) Program|date= 29 August 2013 |archive-date=22 April 2016|publisher=[[Taxpayer groups|Taxpayers for Common Sense]] |access-date=27 November 2016|url-status=live}}</ref> The loan commitments include a $5.9 billion loan to Ford for upgrading factories in five states to produce 13 more fuel-efficient models, a $1.6 billion loan to Nissan to build advanced electric vehicles and advanced batteries, and a $465 million loan to Tesla Motors to manufacture its new electric sedan. These are the first conditional loans released under DOE's Advanced Technology Vehicles Manufacturing (ATVM) Loan Program, which is using an open, competitive process to provide about $25 billion in loans to companies that produce cars or vehicle components in the United States. To qualify, companies must propose projects that increase fuel economy to at least 25% above 2005 fuel economy levels.<ref name="apps1.eere.energy.gov">{{cite web|url=http://apps1.eere.energy.gov/news/news_detail.cfm/news_id=12594 |title=DOE Awards $8 Billion in Loans for Advanced Vehicle Technologies |date=2009-06-24 |work=[[Office of Energy Efficiency and Renewable Energy|Energy Efficiency and Renewable Energy]] news |publisher=[[United States Department of Energy]] |access-date=2010-04-25 |archive-url=https://web.archive.org/web/20100528000955/http://apps1.eere.energy.gov/news/news_detail.cfm/news_id%3D12594 |archive-date=28 May 2010 |url-status=live }}</ref> By 2014, Ford and Nissan were making payments, while Tesla paid back the loan in 2013.<ref>{{cite web|url=http://greenautomarket.com/tag/advanced-technology-vehicle-manufacturing/ |title=Advanced Technology Vehicle Manufacturing|work=Green Auto Market |first=Jon |last=LeSage|date=7 April 2014|access-date=27 November 2016}}</ref>  Nissan eventually repaid the loan in 2017.<ref name=el2020/> The program has earned the government nearly $3 billion in interest. The program had not issued new loans since 2011, and six applicants were seeking around $12 billion of loans in early 2020. The federal government has considered shutting down the program under the [[First presidency of Donald Trump|Trump Administration]].<ref name=el2020>{{cite web |last1=Berman |first1=Bradley |title=Trump budget kills loan program sought by EV-maker Lordstown Motors |url=https://electrek.co/2020/02/12/trump-budget-kills-loan-program-sought-by-ev-maker-lordstown-motors/ |website=[[Electrek]] |date=12 February 2020}}</ref> {{as of|2023|2}}, the Department was analyzing 126 proposals for loans totaling $126 billion.<ref name=forbes0323>{{cite web |last=Ohnsman |first=Alan |date=9 February 2023 |title=Redwood Wins $2 Billion Federal Loan To Scale Up Production Of Battery Materials For Electric Cars |url=https://www.forbes.com/sites/alanohnsman/2023/02/09/redwood-wins-2-billion-federal-loan-to-scale-up-production-of-battery-materials-for-electric-cars/ |work=[[Forbes]]}}</ref>

=== Ford ===
Ford Motor Company received its loan in September 2009, the funds were used to upgrade its engine plants in Dearborn, Michigan; Cleveland, Ohio; and [[Lima Engine|Lima, Ohio]], and to upgrade its transmission plants in Livonia, Michigan; Sterling Heights, Michigan; and Sharonville, Ohio. Ford also upgraded its assembly plants in Chicago, Illinois; Louisville, Kentucky; Dearborn, Michigan; Wayne, Michigan; and Kansas City, Missouri, converting two of the truck factories into assembly plants for cars. In addition, the loan financed advances in traditional combustion engines and [[Ford Focus Electric|electrified vehicles]]<ref>{{cite web|url=https://www.forbes.com/sites/joannmuller/2012/08/29/automakers-report-card-who-still-owes-taxpayers-money-the-answer-might-surprise-you/2/ |title=Automakers' Report Card: Who Still Owes Taxpayers Money? The Answer Might Surprise You|date=29 August 2012|work=Forbes|access-date=27 November 2016}}</ref> and helped raise the fuel efficiency of more than two dozen popular models.<ref name="apps1.eere.energy.gov"/> The [[Ford EcoBoost engine#V-type six-cylinder|V6 EcoBoost engine]] benefited from the loan, and is installed in many cars as well as over 500,000 [[Ford F-Series twelfth generation|F-150]], saving 268 million gallons of gasoline by 2014.<ref>{{cite web|url=http://midwestenergynews.com/2014/05/21/fuel-efficiency-loan-program-looking-beyond-the-big-three/ |title=Fuel-efficiency loan program looking beyond the Big Three|first=Andy |last=Balaskovitz |date=21 May 2014|work=Midwest Energy News|access-date=27 November 2016}}</ref> The loan was fully repaid($5.9 billion including interest) in June 2022.<ref>{{cite web|url=https://www.energy.gov/lpo/ford |title=Department of Energy LPO Ford|access-date=20 March 2025}}</ref>

In 2023, the Program approved a $9.2 billion loan for [[Blue Oval City]], a battery plant by Ford and [[SK Innovation]].<ref name="FordSK">{{cite web |title=LPO Announces Conditional Commitment for Loan to BlueOval SK to Further Expand U.S. EV Battery Manufacturing Capacity |url=https://www.energy.gov/lpo/articles/lpo-announces-conditional-commitment-loan-blueoval-sk-further-expand-us-ev-battery |website=Energy.gov |archive-url= https://web.archive.org/web/20230626095305/https://www.energy.gov/lpo/articles/lpo-announces-conditional-commitment-loan-blueoval-sk-further-expand-us-ev-battery |archive-date=26 June 2023 |language=en |date=22 June 2023 |url-status=live}}</ref>

=== Nissan ===
Nissan aims to manufacture a cost-competitive electric vehicle with a [[lithium-ion battery]] pack in [[Smyrna, Tennessee]], and plans to eventually reach a production capacity of 150,000 vehicles per year.<ref name="apps1.eere.energy.gov"/> The [[Nissan Leaf]] is produced at [[Nissan Smyrna Assembly Plant|Nissan's Smyrna assembly plant]] since 2013, along with [[Electrochemical cell|cell]]s for its batteries.<ref>[http://energy.gov/sites/prod/files/2016/02/f29/DOE-LPO_Mini-Reports_004_ATVM-Driving-Economic-Growth_FINAL_Jan-2016.pdf Driving Economic Growth: ADVANCED TECHNOLOGY VEHICLES MANUFACTURING] January 2016</ref> Nissan repaid the loan in 2017.<ref name=el2020/>

=== Tesla ===
Tesla Motors will use its funding ({{USD|465 million}}) to finance a California-based manufacturing facility for the [[Tesla Model S]] sedan, an all-electric sedan that can be recharged at a conventional 120-volt or 240-volt outlet. Production will begin in 2011 and ramp up to 20,000 vehicles per year by the end of 2013.<ref name="apps1.eere.energy.gov"/><ref>{{cite news |work=The Business Journals |publisher=Pacific Business news |date=2009-06-24 |access-date=2015-04-12 |url=http://www.bizjournals.com/pacific/stories/2009/06/22/daily33.html |title=Tesla gets long-awaited government loan |archive-url=https://web.archive.org/web/20160505192107/http://www.bizjournals.com/pacific/stories/2009/06/22/daily33.html |archive-date=2016-05-05 |url-status=live}}</ref><ref>{{cite web |url=http://www.drivingtoday.com/news_this_week/2009-07-17-4337-driving/index.html |title=Tesla Motors Bags Federal Cash |work=Driving Today |date=2009-07-17 |access-date=2009-08-08 |archive-url=https://web.archive.org/web/20160528012403/http://www.drivingtoday.com/news_this_week/2009-07-17-4337-driving/index.html |archive-date=2016-05-28 |url-status=dead }}</ref> Tesla repaid the loan in May 2013, and was the first car company to have fully repaid the government, while Ford, Nissan and Fisker had not up to that moment.<ref name=iev20130522>{{cite news |last=Cole |first=Jay |title=Tesla Repays Entire DoE Loan, Taxpayers MAKE $12 Million on the Deal |url=http://insideevs.com/tesla-repays-entire-doe-loan-taxpayers-make-12-million-on-the-deal/ |access-date=2013-05-23 |newspaper=Inside EVs |date=2013-05-22 |archive-url=https://web.archive.org/web/20160506051437/http://insideevs.com/tesla-repays-entire-doe-loan-taxpayers-make-12-million-on-the-deal/ |archive-date=2016-05-06 |url-status=live}}</ref>

=== Fisker Automotive ===
The fourth conditional commitment that the Department of Energy has entered into under the ATVM Loan program is a $528.7 million loan for [[Fisker Automotive]] for the development of two lines of [[plug-in hybrid]]s by 2016.<ref>{{cite web|url=https://lpo.energy.gov/?p=888 |title=US Energy Secretary Chu Announces $528 Million Loan for Advanced Vehicle Technology for Fisker Automotive |date=2009-09-22 |publisher=[[United States Department of Energy]] |access-date=2011-02-10 |url-status=dead |archive-url= https://web.archive.org/web/20111015131624/https://lpo.energy.gov/?p=888 |archive-date=2011-10-15 }}</ref> Fisker received $192 million, before losing access to the rest of the loan. Fisker later [[Default (finance)|defaulted]] once the company began to suffer from financial issues. In 2013, the company declared voluntary bankruptcy.<ref>{{cite news |last=Keane |first=Angela Greiling |title=Fisker to Sell Assets in Bankruptcy at $139 Million Lossn |url=https://www.bloomberg.com/news/2013-11-22/fisker-to-sell-assets-in-bankruptcy-at-139-million-loss.html |work=[[Bloomberg L.P.|Bloomberg]] |date=November 23, 2013 |access-date=November 23, 2013}}</ref> The DOE would ultimately reclaim $28 million from Fisker for a total of $53 million recovered of its $192 million loan. The money came from a three-day auction in which Chinese auto parts supplier [[Wanxiang Group]] received court approval on February 18, 2014, to buy the assets of Fisker with a bid of $149.2 million against a rival bid from Hong Kong billionaire [[Richard Li]].<ref name=canis/>

=== Syrah Technologies ===
In 2022, the program granted $107 million to Syrah Technologies to assist its graphite-based active anode material Vidalia Facility in Louisiana. The grant was the first in over 10 years.<ref>{{cite web |title=DOE loans office commits over US$600 million to Utah hydrogen hub & Louisiana graphite facility |url=https://www.energy-storage.news/doe-loans-office-commits-over-us600-million-to-utah-hydrogen-hub-louisiana-graphite-facility/ |website=Energy Storage News |date=27 April 2022}}</ref>

=== Ultium Cells LLC ===
The joint venture of [[General Motors]] and [[LG Energy Solution]], Ultium Cells LLC, won a $2.5 billion loan in December 2022. The company intends to use the loan towards setting up three US factories in the states of Ohio, Tennessee, and Michigan, to make its lithium-ion battery systems.<ref>{{cite news |last=Shepardson |first=David |date=12 December 2022 |title=U.S. finalizes $2.5 billion loan to GM, LG battery joint venture |url=https://www.reuters.com/business/energy/us-finalizes-25-billion-loan-gm-lg-battery-joint-venture-2022-12-12/ |publisher=[[Reuters]]}}</ref>

=== Redwood Materials ===
[[Redwood Materials]] secured a $2 billion conditional loan in February 2023. The company which relies primarily on Asia for importing essential components to make EV batteries said it would use the funds to build a supply base in the US and expand operations by building a facility in [[Charleston, South Carolina]].<ref name=forbes0323 />

== Unsuccessful applications ==
About 108 requests were made to the program by 2010, but few were approved. Many of the companies which were denied loans have since gone out of business. Among the applicants denied were:<ref name=Schreiber>{{cite web|url= http://www.thetruthaboutcars.com/2013/05/has-the-dept-of-energys-advanced-technology-vehicle-manufacturing-program-been-a-failure-not-really/ |archive-url= https://web.archive.org/web/20150928222246/http://www.thetruthaboutcars.com/2013/05/has-the-dept-of-energys-advanced-technology-vehicle-manufacturing-program-been-a-failure-not-really/ |title=Has the Dept of Energy's Advanced Technology Vehicle Manufacturing Program Been a Failure? Not Really |first=Ronnie |last=Schreiber |date=18 May 2013 |archive-date=28 September 2015|work=[[The Truth About Cars]]|access-date=27 November 2016|url-status=live}}</ref>

* A loan request under this program was denied for [[Carbon Motors Corporation]] in March 2012 after the latter had spent 2 years prior addressing the DOE's concerns.<ref name="fox3712">{{cite news|url=http://www.foxnews.com/auto/department-of-energy-says-no-to-carbon-motors-loan-request-for-police-car|title=Department of Energy says 'no' to Carbon Motors' loan request for police car|date=March 7, 2012|publisher=Fox News|access-date=5 June 2012|archive-url=https://web.archive.org/web/20120623012100/http://www.foxnews.com/leisure/2012/03/07/department-energy-says-no-to-carbon-motors-atvm-loan-request/|archive-date=23 June 2012|url-status=live|df=dmy-all}}</ref>
* [[Aptera Motors]]' initial application was denied because its product was a three-wheeled vehicle; the wording on the program was modified to allow high-mileage three-wheelers and Aptera reapplied, however the company went out of business before the DOE responded to their second application.
* [[Brammo]] asked for $45 million, application was rejected.
* [[Local Motors]]' Local Motors initial application (filed in 2009) was rejected, company said to be working on resubmission.
* [[Bright Automotive]], who filed their application in 2008, went out of business in March 2012 after waiting 4 years for the DOE to respond and being unable to sustain continued operations.<ref name="fox3712"/>
* [[Coda Automotive]], ultimately went into [[Chapter 11, Title 11, United States Code|Chapter 11 bankruptcy]] on May 1, 2013.<ref>{{cite web |title=Coda Automative Chapter 11 Petition |url=https://www.pacermonitor.com/view/YRINOOA/Coda_Automotive_Inc__debke-13-11154__0001.0.pdf |website=PacerMonitor |publisher=PacerMonitor |date=2013-05-01 |access-date=2016-06-10}}</ref>
* XP Vehicles - sued the U.S. Department of Energy <ref>{{Cite web|author= Patrick George|url=http://jalopnik.com/meet-the-inflatable-car-inventor-suing-the-u-s-for-504488747|title = Meet the 'Inflatable Car' Inventor Suing the U.S. For $675 Million| date=15 May 2013|publisher= Jalopnik.com|archive-url = https://web.archive.org/web/20140424233137/https://jalopnik.com/meet-the-inflatable-car-inventor-suing-the-u-s-for-504488747|archive-date= 24 April 2014}}</ref>{{update inline|date=September 2019}}

== References ==
{{reflist}}

==External links==
*[https://web.archive.org/web/20081107051432/http://www.atvmloan.energy.gov/ Advanced Technology Vehicles Manufacturing Loan Program]- Official website
* {{cite web|url=http://www.atvmloan.energy.gov/keydocs/fiskerconditionalcom.pdf |title=Conditional commitment letter by and between United States Department of Energy and Fisker Automotive, Inc |date=September 18, 2009 |url-status=dead |archive-url=https://web.archive.org/web/20100613143723/http://www.atvmloan.energy.gov/keydocs/fiskerconditionalcom.pdf |archive-date=June 13, 2010 }}
* {{cite web|url=http://www.atvmloan.energy.gov/keydocs/teslaconditionalcom.pdf |title=Conditional commitment letter by and between United States Department of Energy and Tesla Motors, Inc |date=June 23, 2009 |url-status=dead |archive-url=https://web.archive.org/web/20100613143729/http://www.atvmloan.energy.gov/keydocs/teslaconditionalcom.pdf |archive-date=June 13, 2010 }}
* {{cite web |url=https://www.scribd.com/doc/145484203/HQ-2013-00911-F-George-List-of-Loans |title=Conditional commitment letter by and between United States Department of Energy and Tesla Motors, Inc |date=June 23, 2013}}

[[Category:United States federal energy legislation]]
[[Category:Energy policy of the United States]]

Advanced Technology Vehicles Manufacturing Loan Program - Revision history

imported>Panamitsu: add {{Use American English}} template per MOS:TIES