Ford and SK On have secured a government loan of $9.63 billion for their BlueOval SK battery joint venture, as reported by Reuters on Monday.
This loan amount represents an increase from the initial $9.2 billion reported in June by The New York Times.
The Department of Energy loan, the largest one related to EV manufacturing by the Biden administration, will be used to support the construction of battery plants in Kentucky and Tennessee.
Back in 2021, Ford had announced plans for these plants, with an investment of $11.4 billion and the creation of nearly 11,000 new jobs. The BlueOval SK joint venture aims to achieve 60 gigawatt-hours of annual battery cell production by the mid-2020s.
BlueOvalSK Battery Park – rendering, September 2021
The project includes Blue Oval City in Tennessee and BlueOval SK Battery Park in Kentucky, with plans to have both operational by 2025.
Blue Oval City will house a battery plant, a supplier park, and a vehicle assembly plant for electric trucks, including the F-150 Lightning. Meanwhile, the BlueOval SK Battery Park in Kentucky will focus on producing cells for Ford and Lincoln EVs.
BlueOvalSK Battery Park – rendering, September 2021
Aside from these ventures, Ford also announced a $3.5 billion deal with CATL for a battery plant in Michigan and continues to produce the Mustang Mach-E in Mexico using LG cells sourced from Poland.
Under the Biden administration, the Energy Department has revived a loan program that previously supported companies like Tesla, Nissan, and Ford. This includes loans to Redwood Materials and General Motors’ Ultium Cells LLC joint venture with LG.
Note – This story was updated to reflect a new loan amount as of December