Ford Secures $9.2 Bln DOE Loan For EV Battery Factories

(RTTNews) - Auto giant Ford has secured a conditional commitment for a $9.2 billion loan from the Department of Energy or DOE to construct three battery factories dedicated to electric vehicle or EV production. This significant loan, originating from the DOE's loan program office, mirrors previous funding initiatives for companies like Tesla and aligns with the Biden administration's objective of catalyzing an American EV manufacturing revolution.

The loan has been 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. By supporting the expansion of EV battery manufacturing facilities, the Biden administration seeks to bolster the nation's manufacturing capabilities, create employment opportunities, and drive sustainable innovation in the automotive industry.

The loan represents a significant step forward in the pursuit of a greener transportation sector, aligned with the administration's broader climate and clean energy goals. As Ford takes this ambitious stride, the automotive industry as a whole stands to benefit from increased investments and collaborations aimed at propelling the transition to electric mobility.