- The three plants will have the capacity to produce 120 GWh worth of EV batteries each year.
- This loan has been in the works for more than 18 months and was only just approved.
- The DOE has also made recent loan commitments to Rivian and Stellantis.
Ford and South Korean battery manufacturer SK On are getting a huge $9.63 billion loan from the U.S. Department of Energy to build three battery manufacturing plants in Tennessee and Kentucky for electric vehicles.
In June 2023, it was initially revealed Ford and SK On would be getting a $9.2 billion loan to help with the construction of three factories. It’s unclear why the loan amount has increased, but it is the largest loan provided by the US government’s Advanced Technology Vehicles Manufacturing program. This program aims to help American firms catch up with industry-leading Chinese battery makers.
Read: Rivian’s Georgia Plant Gets A $6.6 Billion Lifeline Thanks To Taxpayers
The money will be provided to Blue Oval SK, a joint venture operated by the two companies. They’ve already invested over $11 billion in the construction of the three plants. Production at the first of the two plants in Kentucky is scheduled to start in early 2025, while the Tennessee site will be ready to start manufacturing in late 2025.
When all three sites are up and running, they’ll be capable of producing 120 GWh of EV batteries annually.
Speaking with Reuters, Blue Oval SK said it took 18 months for the Department of Energy to complete the loan process due to the time needed to conduct due diligence, including market, credit, financial, legal, and regulatory reviews.
This isn’t the only significant EV loan announced in recent weeks; just before Donald Trump returns to the presidency, the DOE announced a conditional commitment to loan $7.54 billion to the joint venture operated by FCA US and Samsung SDI to establish two lithium-ion battery cell and module manufacturing plants in Kokomo, Indiana. Rivian also recently received approval for a $6.57 billion loan from the DOE, although that loan has come under the microscope of Vivek Ramaswamy, who will lead the new Department of Government Efficiency alongside Elon Musk.
