In a significant boost for the US EV industry, Ford’s joint venture, BlueOval SK, has closed a $9.63 billion loan from the Department of Energy’s (DOE) Loans Programs Office.
The DOE loan will go toward the construction of three state-of-the-art battery manufacturing plants – one in Tennessee and two in Kentucky – as Ford scales up its EV supply chain and pushes for more domestic battery production.
These plants, a cornerstone of Ford’s EV expansion, are expected to churn out more than 120 gigawatt-hours of batteries annually once fully operational. To get these factories off the ground, more than 5,000 construction jobs were created, and when the facilities open, they’ll provide up to 7,500 new operations jobs.
BlueOval SK – a partnership between Ford and Korean battery manufacturer SK On – will supply batteries for Ford’s next-generation electric Ford and Lincoln vehicles.
The DOE’s investment is the largest ever awarded through its Advanced Technology Vehicles Manufacturing (ATVM) program. It underscores the Biden administration’s focus on strengthening domestic EV manufacturing while reducing reliance on overseas battery suppliers.
The effort aligns with the goal to make half of all new vehicles 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% increase month-over-month and a 13.6% increase year-over-year.
As part of the loan’s conditions, BlueOval SK has to ensure that there is a benefit to local communities, so it’s partnered with Tennessee College of Applied Technology and Kentucky’s Elizabethtown Community and Technical College to train future employees. These initiatives aim to equip the workforce with the skills needed for high-quality, future-proof jobs.
The DOE’s recent loans – part of a broader strategy to shore up the EV supply chain – have supported everything from critical mineral processing to battery recycling. This latest investment in BlueOval SK highlights the Biden administration’s commitment – right to the very end of its four-year term – to scaling clean energy technologies domestically.
