Summary
- DOE LPO closed a direct loan of up to $9.63 billion to BlueOval SK
- The loan is for construction of up to three battery manufacturing plants for Ford’s EVs
- Plants will be located in Tennessee and Kentucky with high battery production capacity
- BlueOval SK has a Community Benefits Plan with Tennessee and Kentucky technical colleges
- The technical colleges will train community members for jobs at the new facilities
Article
The US Department of Energy’s Loan Programs Office (LPO) has provided a direct loan of up to $9.63 billion to BlueOval SK, a joint venture between Ford and South Korean battery supplier SK On. This funding will be used for the construction of up to three manufacturing plants that will produce batteries for Ford’s future Ford and Lincoln EVs. The plants will be located in Tennessee and Kentucky and will have the capacity to support more than 120 gigawatt-hours of US battery production annually.
In addition to the financial support for the construction of the manufacturing plants, LPO borrowers are required to develop and implement a comprehensive Community Benefits Plan (CBP). As part of its CBP, BlueOval SK has partnered with Tennessee College of Applied Technology and Elizabethtown Community and Technical College to construct new community and technical colleges. These educational institutions will focus on training members of the community for jobs at the facilities, creating opportunities for local residents to skill up and gain employment in the growing EV industry.
The partnership between BlueOval SK and the educational institutions in Tennessee and Kentucky highlights the commitment to the local communities where the manufacturing plants will be located. By working with these institutions, the joint venture is not only creating job opportunities for residents but also investing in the future workforce of the EV industry. This collaborative effort will help bridge the skills gap and provide individuals with the training they need to succeed in the growing field of electric vehicles.
The investment in battery production for electric vehicles is a significant step towards advancing the adoption of clean energy technologies and reducing carbon emissions. By supporting the construction of manufacturing plants that will produce batteries for Ford’s EVs, the US Department of Energy is playing a crucial role in accelerating the transition to sustainable transportation. This direct loan to BlueOval SK demonstrates the government’s commitment to supporting the growth of the EV industry and fostering innovation in clean energy technologies.
With the construction of the manufacturing plants in Tennessee and Kentucky, BlueOval SK is not only contributing to the local economies but also advancing the production capacity of US battery manufacturing. By supporting the development of these facilities, the joint venture is helping to establish a robust supply chain for electric vehicle batteries, which is essential for meeting the growing demand for EVs. This investment will not only create jobs and economic opportunities in the region but also strengthen the US position in the global EV market.
Overall, the direct loan provided by the US Department of Energy to BlueOval SK for the construction of manufacturing plants for battery production demonstrates a commitment to advancing the EV industry and promoting clean energy technologies. The partnership between BlueOval SK and local educational institutions underlines the importance of investing in workforce development and creating job opportunities in the growing field of electric vehicles. By supporting the growth of US battery manufacturing capacity, this initiative will contribute to reducing carbon emissions and accelerating the adoption of sustainable transportation solutions.
Read the full article here
