Summary
- Ford and SK On will receive a $9.63 billion government loan for their BlueOval SK battery joint venture
- The loan amount was originally $9.2 billion, but has been increased
- The loan will help finance construction of battery plants in Kentucky and Tennessee
- The joint venture aims to produce 60 gigawatt-hours of battery cells annually by the middle of the decade
- The Energy Department loan is the largest so far by the Biden administration related to EV manufacturing, and is part of a larger effort to support the electric vehicle industry.
Article
Ford and SK On have secured a $9.63 billion government loan for their BlueOval SK battery joint venture, an increase from the original $9.2 billion reported in June. This loan, the largest so far by the Biden administration related to EV manufacturing, will help fund the construction of battery plants in Kentucky and Tennessee. The joint venture aims to achieve 60 gigawatt-hours of annual battery cell production by the middle of the decade. The plans include the development of Blue Oval City in Tennessee and BlueOval SK Battery Park in Kentucky, with the goal of creating nearly 11,000 new jobs at the two manufacturing complexes, which are expected to be operational by 2025.
Blue Oval City in Tennessee will house a battery plant, supplier park, and vehicle assembly plant producing electric trucks, including the next-generation F-150 Lightning. SK On is already manufacturing cells for the current-generation Lightning in Georgia. The BlueOval SK Battery Park in Kentucky will consist of two battery plants producing cells for future Ford and Lincoln EVs. Ford also announced a $3.5 billion deal with CATL for a battery plant in Michigan, in addition to assembling the Mustang Mach-E in Mexico using LG cells sourced from a factory in Poland.
The Energy Department loan is the largest under a revived program by the Biden administration, which was previously used by the Obama administration to fund companies such as Tesla, Nissan, and Ford. The Trump administration had ignored this program, but under President Biden, the Energy Department has extended loans to companies like JB Straubel’s Redwood Materials battery-recycling company and General Motors’ Ultium Cells LLC battery joint venture with LG. This loan will help support the expansion of electric vehicle manufacturing and battery production in the United States.
The partnership between Ford and SK On in the BlueOval SK battery joint venture signifies a significant investment in the future of electric vehicles. The construction of battery plants in Kentucky and Tennessee will not only create thousands of new jobs but also contribute to the goal of achieving 60 gigawatt-hours of annual battery cell production. Blue Oval City in Tennessee will be a hub for electric truck production, including the next-generation F-150 Lightning, while the BlueOval SK Battery Park in Kentucky will produce cells for future Ford and Lincoln EVs. These developments represent a major step towards advancing the electrification of transportation.
The collaboration between Ford and SK On in the BlueOval SK battery joint venture is a strategic move to establish a strong foothold in the growing electric vehicle market. With the support of the $9.63 billion government loan, the construction of battery plants in Kentucky and Tennessee is expected to boost domestic manufacturing of electric vehicle components. The Biden administration’s focus on EV manufacturing through initiatives like the Energy Department loan program demonstrates a commitment to advancing clean energy technologies and reducing greenhouse gas emissions in the transportation sector.
The expansion of electric vehicle production in the United States through partnerships like the BlueOval SK battery joint venture is essential for achieving the country’s climate and energy goals. By investing in the construction of battery plants and promoting domestic manufacturing of electric vehicle components, companies like Ford and SK On are playing a crucial role in accelerating the transition to sustainable transportation. The government’s support for initiatives like the BlueOval SK battery joint venture reflects a broader commitment to promoting clean energy technologies and creating new opportunities for economic growth and job creation in the EV sector.
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