Ford Motor's joint venture with South Korean electric vehicle battery manufacturer SK On has obtained a substantial loan of up to $9.63 billion from the US government to construct three new battery production facilities. On Monday, the US Department of Energy finalized the direct loan to BlueOval SK under its Advanced Technology Vehicles Manufacturing Program.
This significant funding will support the development of one manufacturing facility in Tennessee and two plants in Kentucky, aimed at producing batteries for Ford's upcoming electric vehicles, as stated by the DOE. BlueOval SK represents a collaborative effort between Ford and SK On focused on delivering advanced battery solutions for future Ford EVs.
Previously, in June 2023, the DOE conditionally agreed to provide up to $9.2 billion to BlueOval SK to facilitate the establishment of these plants. These new facilities are projected to yield over 120 gigawatt hours of annual battery production, according to the DOE. The construction phase of the three plants generated more than 5,000 jobs and is anticipated to introduce as many as 7,500 operational positions at BlueOval SK. Ford and BlueOval SK have not yet responded to inquiries from MT Newswires regarding this project.
Production at the Kentucky and Tennessee locations is expected to commence next year. This announcement emerges amidst reports indicating that President-elect Donald Trump’s transition team is deliberating alterations to reduce support for electric vehicles and charging infrastructure, while simultaneously looking to strengthen measures that would prevent the importation of cars, components, and battery materials from China. The DOE highlighted that this initiative underscores President Biden's commitment to onshoring and re-shoring domestic manufacturing, ensuring that American businesses continue to lead in future technologies.
The expansion of domestic production for American-made batteries is essential for decreasing reliance on foreign adversaries such as China, fulfilling climate commitments both domestically and internationally, and achieving the goal set by President Biden for half of all new vehicles sold by 2030 to be zero-emissions..