The US Department of Energy’s (DOE) Loan Programs Office (LPO) has finalised a direct loan of up to $9.63bn to BlueOval SK (BOSK), a joint venture (JV) between Ford Motor and Korean electric vehicle (EV) battery manufacturer SK On.
The funding will support the construction of up to three manufacturing plants in Tennessee and Kentucky to produce batteries for Ford and Lincoln EVs.
Part of the Biden-Harris Administration’s Investing in America agenda, the project represents the largest loan issued through DOE’s Advanced Technology Vehicles Manufacturing (ATVM) Program.
Once operational, the facilities are expected to produce more than 120GWh of batteries annually, supporting the US’ growing demand for EVs and strengthening its position in the global EV market.
The construction of the facilities created over 5,000 jobs, with up to 7,500 operational roles anticipated upon their completion.
In line with US President Joe Biden’s goal of ensuring that half of all new vehicles sold by 2030 are zero-emission, the initiative seeks to bolster domestic battery production while reducing reliance on foreign imports.
The effort also aligns with the administration’s broader climate commitments and focus on reshoring critical manufacturing capabilities.
The DOE stated: “Today’s announcement reinforces President Biden’s historic efforts to onshore and re-shore domestic manufacturing and ensure American businesses remain global leaders in technologies of the future.
“Expanding domestic production of American-made batteries is critical to reducing America’s reliance on adversarial foreign nations like China, meeting the Nation’s domestic and international climate commitments, and achieving President Biden’s goal to make half of all new vehicles sold in 2030 zero-emissions vehicles.”
BlueOval SK has partnered with the Tennessee College of Applied Technology and Elizabethtown Community and Technical College in Kentucky as part of its Community Benefits Plan (CBP), a requirement for LPO borrowers.
These partnerships will establish training programs to prepare community members for roles at the new facilities, fostering local workforce development.
Since June 2023, LPO has worked closely with BlueOval SK to finalise the financing.
