The agreement was negotiated and signed by the Department’s Loan Programs Office, which supports the development of innovative, advanced vehicle technologies to create thousands of clean energy jobs while helping reduce the nation’s dependence on foreign oil.
“This is an investment in our clean energy future that will create jobs and reduce our dependence on foreign oil,” said Secretary Chu. “It will help build a customer base and begin laying the foundation for American leadership in the growing electric vehicles industry. This is part of a sustained effort to develop and commercialize technologies that will be broadly deployed throughout the American auto industry.”
Tesla’s planned Model S will consume no gasoline and will not produce any tailpipe emissions. It is being designed to offer a variety of range options depending on the battery pack used, from 160 to 300 miles on a single charge. Volume production of the Model S is planned to begin in 2012 with a target production capacity of 20,000 vehicles per year by the end of 2013. According to Tesla, the Model S project and power-train manufacturing facility are expected to create over 1,600 jobs.
Today’s announcement marks the second loan arrangement agreement signed by DOE with an advanced technology vehicle manufacturer. In September 2009, DOE signed its first loan agreement for $5.9 billion to Ford Motor Company. The Department has also signed conditional commitments with Nissan North America, Inc. and Fisker Automotive. Tenneco Inc. became the first advanced technology component manufacturer to obtain a conditional commitment from DOE in October of last year. Nissan plans to build electric cars and battery packs at the company’s Smyrna, Tennessee manufacturing complex, while Fisker recently announced plans to build plug-in hybrid electric vehicles by reopening a shuttered GM plant in Wilmington, Delaware.
The Department of Energy was appropriated $7.5 billion by Congress to support up to $25 billion in loans to companies making cars and components in US factories that increase fuel economy at least 25 percent above 2005 fuel economy levels. The Department plans to make additional loans over the next several months to large and small auto manufacturers and parts suppliers up and down the production chain. The intense technical and financial review process is focused not on choosing a single technology over others, but is aimed at promoting multiple approaches for achieving a fuel efficient economy.
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Source : DOE, January 21, 2010
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