Photo: BlueOval SK
In a major development in the US EV industry, Ford's joint venture, BlueOval SK, has closed a $9.63 billion loan from the Department of Energy's (DOE) Loan Programs Office.
The DOE loan will go toward the construction of three state-of-the-art battery manufacturing facilities — one in Tennessee and two in Kentucky — as Ford expands its EV supply chain and pushes for more battery production domestically.
These facilities, the basis of Ford's EV expansion, are expected to produce more than 120 gigawatt-hours of batteries per year when fully operational. To complete these factories, more than 5,000 construction jobs have been created, and when the buildings open, they will provide up to 7,500 new jobs.
BlueOval SK – a partnership between Ford and Korean battery manufacturer SK On – will supply batteries for Ford's next-generation Ford and Lincoln electric vehicles.
The investment is the largest DOE has ever awarded for its Advanced Technology Vehicles Manufacturing (ATVM) program. It underscores the Biden administration's focus on bolstering domestic EV production while reducing reliance on overseas battery suppliers.
The effort is in line with the goal of making half of all new cars sold in the US zero-emission by 2030. Expanding domestic production creates new economic opportunities for American workers and meets the growing demand for EVs. Today, Cox Automotive reported that in November, new EV sales reached 116,072 units, marking a 10% month-over-month increase and a 13.6% year-over-year increase.
As part of the loan conditions, BlueOval SK must ensure that there is benefit to local communities, so it has partnered with Tennessee College of Applied Technology and Elizabethtown Community and Technical College of Kentucky to train future workers. These programs aim to equip workers with the skills needed to find quality, future-proof jobs.
The DOE's latest loans — part of a broader strategy to strengthen the EV supply chain — have supported everything from the processing of precious metals to the recycling of batteries. This latest investment in BlueOval SK highlights the commitment of the Biden administration – until the end of their four-year term – to promote clean energy technologies at home.
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