The Department of Energy’s loan programs office announced on Wednesday the approval of a substantial $362 million loan to CelLink Corp. The loan is designated to facilitate the construction of a state-of-the-art plant in Texas, focused on producing components crucial for electric vehicle (EV) assembly.
This financing, sourced from the government’s Advanced Technology Vehicles Manufacturing loan program, is intended to support the development of lighter and more efficient flexible circuit wiring harnesses. These harnesses are pivotal components not only for automotive applications but also for various other industries. CelLink has pioneered a novel approach to connecting battery cells and packs, as well as facilitating the transmission of power and data across vehicle sensors, modules, and electronic control units.
Traditionally, a significant portion of wire harness production for the U.S. market has been outsourced to countries with lower labor costs. This trend is largely due to the complex processes involved in traditional wire harness assembly, as highlighted by the Energy Department.
Upon becoming operational, the new facility is projected to manufacture a substantial quantity of wiring harnesses, capable of supporting the production of approximately 2.7 million EVs annually, while also creating over 1,200 jobs.
U.S. Energy Secretary Jennifer Granholm emphasized the significance of boosting manufacturing capabilities for key EV components, particularly considering the exponential growth in EV sales since President Biden’s inauguration. Granholm underscored the necessity for the United States to play a leading role in this crucial sector.
The Texas facility’s expansion plans include the installation of up to 25 manufacturing lines, which will be phased in over the coming years based on market demand.
Recently, the Biden administration revised its targets for electric vehicle adoption, anticipating that between 35% and 56% of all new vehicles will be electric by 2030-2032. This adjustment was met with criticism from auto workers in Michigan, a key political battleground state, who expressed concerns about the administration’s ambitious targets.
