The US government has officially approved a substantial low-cost loan of $9.63 billion for BlueOval SK LLC, a joint venture between South Korea’s SK On Company and Ford Motor Company. This loan will support the construction of battery manufacturing capacity in the United States, as part of the Advanced Technology Vehicles Manufacturing (ATVM) program aimed at promoting domestic production of fuel-efficient vehicles.
The Biden administration, in its final days, gave the green light for the loan, following the DOE’s preliminary approval last year. The goal is to have half of all new vehicles sold in the US be zero-emission models by 2030. The loan will enable BlueOval SK to complete the construction of three battery manufacturing plants – one in Tennessee and two in Kentucky. These plants will have a combined production capacity of 120 gigawatt-hours (GWh) of batteries, sufficient to power around 1.2 million electric vehicles.
Established in 2021, BlueOval SK is investing a total of $11.4 billion in these three plants, two of which are expected to be operational by 2025. These facilities will supply batteries for future Ford and Lincoln electric vehicle models. The DOE highlighted that the construction of these plants has already created over 5,000 jobs, with a further 7,500 permanent jobs expected once the plants are operational. The facilities are crucial for meeting domestic demand and ensuring the US remains a global leader in the rapidly growing electric vehicle industry.
This significant investment in battery manufacturing capacity reflects the commitment to accelerating the shift towards electric vehicles and reducing carbon emissions in the transportation sector. With the loan approval, BlueOval SK is well-positioned to contribute to the growth of the EV market and support the transition to a more sustainable transportation ecosystem.
