Startup Lordstown Motors in talks for U.S. retooling loan for electric truck factory

WASHINGTON — Startup Lordstown Motors Corp. stated Wednesday it’s in superior talks with the U.S. Energy Department in search of a authorities loan from a program to assist pay for the prices of retooling a factory to construct electric vehicles.

Lordstown CEO Steve Burns in January 2020 advised Reuters the corporate was pursuing a $200 million loan from this system for a former General Motors factory in northeast Ohio it acquired in 2019.

Burns stated the loan would assist “us make more (vehicles) once we start” and “pull future vehicles forward a little bit.” The firm’s manufacturing plan doesn’t require the federal government loan, however Burns stated the loan “puts things on steroids.”

Burns declined to reveal the exact loan quantity sought. “I think you should think in terms of — this is the same loan that Tesla got ” Burns stated.

In 2010, Tesla acquired a $465 million loan from the Energy Department’s Advanced Technology Vehicles Manufacturing program, which additionally awarded bigger loans to Ford Motor Co. and Nissan Motor Co. to retool factories, however has not funded any new loans since 2011.

Nissan and Tesla repaid their loans. Ford is scheduled to repay the rest of its loan by June 2022.

The Energy Department didn’t reply to a request for remark.

A spokesman for Lordstown stated the corporate utilized in May.

“This is fairly late stage and they don’t go into this level of diligence unless we are a good candidate,” Burns stated, saying it will not get finalized earlier than President-elect Joe Biden takes workplace on Jan. 20.

Biden is a robust advocate of electric autos.

Burns reiterated Lordstown is on monitor to start constructing electric pickups in September.

Lordstown plans to pit its Endurance EV pickup in opposition to opponents from different newcomers resembling Rivian and Nikola, in addition to GM, Ford and Tesla.

Lordstown stated Monday it has acquired greater than 100,000 non-binding manufacturing reservations from business fleets for its EV truck.


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