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Shearman & Sterling Advises U.S. Department of Energy on $544 Million Conditional Commitment to Finance SK Siltron CSS SiC Manufacturing Facility

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Published Date

Mar 20 2024

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Shearman & Sterling advised the U.S. Department of Energy’s Loan Programs Office on a conditional commitment to SK Siltron CSS, LLC of a $544 million loan to develop a new facility in Bay City, Michigan for the manufacturing of high-quality silicon carbide wafers to be used in semiconductor devices in electric vehicle (EV) systems and power electronics.

The new facility is projected to be among the top-five manufacturers of SiC wafers globally, boosting U.S. manufacturing competitiveness and expanding its global leadership in clean energy technologies. The project will help meet market demand for EVs and, by allowing for higher efficiency and voltage, SiC semiconductors facilitate faster EV charging times and longer range.

The loan would be offered through LPO’s Advanced Technology Vehicles Manufacturing (ATVM) Loan Program, which supports domestic manufacturing of advanced technology vehicles, qualifying components and materials that improve fuel economy. The announcement was issued by DOE on Feb. 22, 2024 in a press release.

While this conditional commitment indicates DOE’s intent to finance the project, the company must satisfy certain technical, legal, environmental, and financial conditions before DOE enters into definitive financing documents and funds the loan.

The Team