Historic Investment in EV Manufacturing
Ford and SK On have secured a $9.63 billion loan from the U.S. Department of Energy (DOE) to bolster their BlueOval SK battery joint venture. This loan, the largest yet for EV-related projects, will finance the construction of major battery production facilities in Kentucky and Tennessee, advancing the U.S. EV market.
The funding marks an increase from the $9.2 billion initially reported earlier this year, emphasizing the government’s push for domestic clean energy manufacturing.
Key Projects: Blue Oval City and SK Battery Park
This loan will fund two significant projects: Blue Oval City in Tennessee and BlueOval SK Battery Park in Kentucky. Both sites are part of a broader $11.4 billion investment announced in 2021, which promises nearly 11,000 new jobs and 60 gigawatt-hours of battery cell production annually by 2025.
Blue Oval City will include a battery plant, supplier park, and vehicle assembly facility for electric trucks, including the next-generation F-150 Lightning. Meanwhile, BlueOval SK Battery Park will feature two plants producing cells for future Ford and Lincoln EVs.
Expanding EV Capabilities
Beyond BlueOval SK, Ford continues to expand its EV battery infrastructure. The automaker has partnered with CATL on a $3.5 billion battery plant in Michigan and assembles the Mustang Mach-E in Mexico using LG cells imported from Poland.
Ford’s collaboration with SK On is a cornerstone of its EV strategy. SK On already produces cells for the current F-150 Lightning at its Georgia facility, and this loan reinforces their joint commitment to scaling EV production.
Looking Forward
By 2025, the BlueOval SK facilities are expected to be fully operational, supplying batteries for Ford’s growing EV lineup. These investments signal Ford’s determination to lead the EV market, supported by advanced battery production and innovative partnerships.
This historic loan not only advances Ford’s electrification goals but also highlights a critical step toward a more sustainable automotive future.
