Lordstown Motors gets congressional support for federal loan

LORDSTOWN — Congress members from both sides of the aisle are backing Lordstown Motors Corp.’s application for federal dollars to retool its plant to build electric vehicles.

Sign up for the Your Morning Matters email to get ready for your day in the Valley

Two senators and eight house representatives from Ohio on Wednesday issued a letter to U.S. Secretary of Energy Dan Brouillette urging an Advanced Technology Vehicles Manufacturing loan be awarded to the electric vehicle startup, according to a release from the office of U.S. Rep. Tim Ryan of Howland, D-13th.

“We believe the ATVM Loan Program plays a crucial role in supporting the nation’s growth of the U.S. auto manufacturing industry and affords companies the necessary capital for large-scale retooling projects like this,” reads the letter. “Assistance from the federal government would leverage private sector financing for investment in LMC’s plant to build electric vehicles in Lordstown, Ohio, and grow the region into the epicenter of electric vehicle manufacturing in the Midwest.

“Northeast Ohio saw its economy suffer when General Motors announced in October that it was permanently closing its Lordstown Assembly Plant. … As Ohio senators and representatives, it is a high priority to support Lordstown Motors’ business so that it will be successful and provide high-paying job opportunities in the region.”

Each new auto manufacturing job is also expected to create another eight ancillary or related supplier or support jobs, according to the release.

The market for electric vehicles is expected to surpass $151.5 billion by 2024. By 2030, about 7 percent of cars and light trucks on the road will be electrified, according to the release.

The fiscal year 2020 federal domestic spending package allotted $5 million for the program.

The program was established during President George W. Bush’s administration in response to the oil crisis of the mid-2000s. Steve Burns, Lordstown Motors CEO, previously told Mahoning Matters the program was what “launched” Tesla Motors Corp.’s electric vehicle manufacturing.

“Its main function was to allow [manufacturers] to retool their factories to make more fuel-efficient vehicles. … [The Lordstown plant] is kind of the poster child for it,” he said.

The letter was signed by: U.S. Sens. Sherrod Brown (D), and Rob Portman (R); and U.S. Reps. Ryan (D); Bill Johnson (R); David Joyce (R); Marcia Fudge (D); Anthony Gonzalez (R); Marcy Kaptur (D); Brad Wenstrup (R); and Bob Gibbs (R).

This story was originally published January 23, 2020 at 3:52 AM with the headline "Lordstown Motors gets congressional support for federal loan."