Energy Department Offers Conditional Loan to Alcoa for Automotive Sector

The D.O.E. on March 26 announced a conditional commitment for a $259 million loan to Alcoa Incorporated This conditional commitment is the 1st issued by the Department under the Loan Plan Office's Advanced Technology Vehicles Manufacturing loan Plan since Energy Secretary Moniz announced a number of enhancements to the Plan last year; it is the 1st step toward issuing a loan to Alcoa.

If finalized, the loan would support the company's Alcoa, Tennessee, manufacturing facility in producing high-strength aluminum for North American automakers looking to "lightweight" their vehicles. The plant's expansion will provide additional aluminum sheet manufacturing capacity intended for the U.S. automotive market. This type of lightweight high-strength aluminum helps boost fuel economy by reducing vehicle weight while still maintaining safety. High volume models, such as the Ford F-150, are using aluminum-intensive designs to boost fuel economy performance. See the Energy Department news release.

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