Lordstown Motors Corp. Advances to Next Stage in Department of Energy’s Advanced Technology Vehicles Manufacturing Loan Program Application

Rhea-AI Summary

Lordstown Motors Corp. (Nasdaq: RIDE) announced on January 13, 2021, that it has been invited by the U.S. Department of Energy (DOE) to begin the due diligence process for an Advanced Technology Vehicles Manufacturing Loan. While this invitation is significant, it does not guarantee loan approval. The ATVM Loan Program, established in 2007, has allocated over $8 billion in loans to support U.S.-based vehicle manufacturing. CEO Steve Burns emphasized that while the loan could enhance production and R&D, the company’s business model is not reliant on it.

Positive

• Invitation to begin due diligence for ATVM Loan from DOE.
• Potential to increase production capacity for the Lordstown Endurance.
• Opportunity to advance research and development of future vehicles.

Negative

• Loan approval is not guaranteed after due diligence.
• Significant projected funding needs may pose a financial challenge.
• Limited operating history raises concerns about sustainability.

LORDSTOWN, Ohio, Jan. 13, 2021 (GLOBE NEWSWIRE) -- Lordstown Motors Corp. (Nasdaq: RIDE), (“Lordstown Motors”), a leader in electric light duty trucks focused on the commercial fleet market, has accepted an invitation from the United States Department of Energy to start the due diligence process toward securing an Advanced Technology Vehicles Manufacturing Loan (“ATVM Loan”).

The DOE’s invitation is not an assurance that Lordstown Motors will secure an ATVM loan. The ATVM Loan Program was authorized by the Energy Independence and Security Act of 2007 to support the manufacturing of eligible light-duty vehicles and qualifying components in the United States. Since the start of the program, the Department of Energy has closed on more than $8 billion in loans.

“As we’ve said before, our business model is not reliant on receiving the ATVM loan,” remarked Lordstown Motors CEO Steve Burns. “The funds would, however, enable us to increase production capacity to get the Lordstown Endurance to more customers more quickly, while simultaneously advancing research and development of future vehicles.”

About Lordstown Motors Corp.
Lordstown Motors Corp. is an Ohio-based original equipment manufacturer of light duty fleet vehicles, founded by CEO Steve Burns with the purpose of transforming Ohio's Mahoning Valley and Lordstown, Ohio, into the epicenter of electric-vehicle manufacturing. The company owns the 785 acre, 6.2 million square foot Lordstown Assembly Plant where it plans to build the Lordstown Endurance, believed to be the world's first full-size, all-electric pickup truck designed to serve the commercial fleet market. For additional information visit www.lordstownmotors.com.

Forward Looking Statements
This press release includes forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as “feel,” “believes,” expects,” “estimates,” “projects,” “intends,” “should,” “is to be,” or the negative of such terms, or other comparable terminology. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, which could cause actual results to differ materially from the forward-looking statements contained herein due to many factors, including, but not limited to: whether the ATVM Loan will be approved following completion of the due diligence process; our limited operating history and our significant projected funding needs; risks associated with the conversion and retooling of our facility and ramp up of production; our inability to obtain orders from customers and potential customers’ inability to integrate our electric vehicles into their existing fleets; our inability to retain key personnel and to hire additional personnel; competition in the electric pickup truck market; our inability to develop a sales distribution network; and the ability to protect our intellectual property rights. Any forward-looking statements speak only as of the date on which they are made, and Lordstown Motors Corp. undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.

Contacts:

Investors
Carter Driscoll
lordstownIR@icrinc.com

Media
Ryan Hallett / Leigh Harmon
lordstownmotors@ottoandfriends.com

FAQ

What is the ATVM Loan that Lordstown Motors is applying for?

The ATVM Loan is an Advanced Technology Vehicles Manufacturing Loan designed to support the manufacturing of eligible light-duty vehicles in the U.S.

When was Lordstown Motors invited to start the ATVM loan process?

Lordstown Motors was invited on January 13, 2021, to begin the due diligence process for the ATVM loan.

Is the ATVM Loan vital for Lordstown Motors' business model?

No, Lordstown Motors' CEO stated that the business model is not reliant on receiving the ATVM loan.

How much has the DOE allocated to the ATVM Loan Program?

The DOE has closed on more than $8 billion in loans since the program's inception.

What could the ATVM loan help Lordstown Motors achieve?

The loan could help increase production capacity for the Lordstown Endurance while advancing R&D for future vehicles.