US automotive giant Ford has secured a conditional commitment for a $9.2 billion loan from the US Department of Energy (DOE) to help finance the construction of three new battery manufacturing facilities in the US.
This significant loan, originating from the DOE's loan programme office, mirrors previous funding initiatives for companies like Tesla and aligns with the Biden administration's objective of catalysing a US electric vehicle (EV) manufacturing revolution.
The loan was offered to BlueOval SK LLC, a joint venture between Ford and Korean EV battery manufacturer SK On.
The allocated funds will be utilized to establish two factories in Kentucky and one in Tennessee, all specifically designed for the production of batteries to power Ford and Lincoln-branded EVs.
According to the DOE, the loan is expected to generate 5,000 construction jobs and 7,500 operating jobs.
The investment will contribute to bolstering the domestic economy and expanding employment opportunities within the EV manufacturing sector.
This substantial loan represents the latest development from the Department of Energy's Loan Programs Office, which has regained prominence under the Biden administration.
Led by climate tech entrepreneur Jigar Shah, the office aims to leverage its financial resources, in conjunction with the Infrastructure Investment and Jobs Act, to stimulate the growth of a thriving domestic EV industry, including the production of EV batteries and the development of a robust battery supply chain.
The DOE loan to Ford underscores the government's commitment to advancing clean transportation and accelerating the adoption of EVs in the United States.
