The U.S. Energy Department has recently announced its plan to provide a substantial loan to a collaborative effort between Ford Motor and SK Innovation, a South Korean battery manufacturer. This loan, which is estimated to be up to $9.2 billion, is intended to support the construction of three new battery manufacturing plants. These facilities will be located in Tennessee and Kentucky.
The financial support from the government will be facilitated through the Advanced Technology Vehicles Manufacturing (ATVM) loan program. Ford Motor, a renowned American automaker, has joined forces with SK Innovation’s subsidiary, SK On, to establish a joint venture known as Blue Oval SK. This partnership aims to advance battery production capabilities in the United States.
The joint venture’s primary objective is to develop battery manufacturing facilities capable of producing more than 80 gigawatt hours of batteries annually. By leveraging their expertise and resources, Ford and SK Innovation aim to contribute to the expansion and enhancement of battery technology and production in the automotive industry.
The conditional commitment for this government loan underlines the U.S. Energy Department’s commitment to promoting the development and adoption of advanced technology in vehicles. By supporting projects like the construction of battery manufacturing plants, the government seeks to accelerate the transition towards cleaner and more sustainable transportation options.
With the loan, Ford and SK Innovation’s joint venture will be able to strengthen their manufacturing capabilities, boost job creation in the regions where the plants are established, and potentially increase the availability of batteries for electric vehicles. This collaboration highlights the growing importance of partnerships between established automakers and battery manufacturers in the pursuit of electric vehicle production and innovation.