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US confirms USD9.63B loan to Ford-SK On for battery plant construction
(MENAFN)
The US Energy Department announced on Monday that it has finalized a USD9.63 billion loan to BlueOval SK, a joint venture between Ford Motor and South Korean battery manufacturer SK On, to support the construction of three battery production facilities in Tennessee and Kentucky.
This low-interest government loan, part of the Advanced technology vehicles Manufacturing program, marks the largest funding ever awarded under the initiative. SK On operates as the battery division of energy conglomerate SK Innovation.
The finalized loan, initially outlined in a USD9.2 billion conditional commitments in June 2023, comes as part of the Biden administration's broader strategy to bolster electric vehicle (EV) production. As reported by a news agency, the move also comes ahead of President-elect Donald Trump’s inauguration next month, amid criticism from Trump and his advisers regarding the current administration’s pro-EV policies.
Jigar Shah, head of the DOE Loan Programs Office, emphasized the significance of such initiatives in countering global competition. "This program is essential to getting people to choose the United States of America," Shah said. "When you look at the competition that we have from China, it is very clear to me that they have used low-cost debt for a very long time to promote a lot of manufacturing capacity that has hollowed out many communities in Kentucky, Tennessee, and other states around the country."
The BlueOval SK project highlights a critical step in expanding domestic EV infrastructure, aligning with efforts to secure the United States' leadership in clean energy technologies.
The US Energy Department announced on Monday that it has finalized a USD9.63 billion loan to BlueOval SK, a joint venture between Ford Motor and South Korean battery manufacturer SK On, to support the construction of three battery production facilities in Tennessee and Kentucky.
This low-interest government loan, part of the Advanced technology vehicles Manufacturing program, marks the largest funding ever awarded under the initiative. SK On operates as the battery division of energy conglomerate SK Innovation.
The finalized loan, initially outlined in a USD9.2 billion conditional commitments in June 2023, comes as part of the Biden administration's broader strategy to bolster electric vehicle (EV) production. As reported by a news agency, the move also comes ahead of President-elect Donald Trump’s inauguration next month, amid criticism from Trump and his advisers regarding the current administration’s pro-EV policies.
Jigar Shah, head of the DOE Loan Programs Office, emphasized the significance of such initiatives in countering global competition. "This program is essential to getting people to choose the United States of America," Shah said. "When you look at the competition that we have from China, it is very clear to me that they have used low-cost debt for a very long time to promote a lot of manufacturing capacity that has hollowed out many communities in Kentucky, Tennessee, and other states around the country."
The BlueOval SK project highlights a critical step in expanding domestic EV infrastructure, aligning with efforts to secure the United States' leadership in clean energy technologies.
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