The Department of Energy’s Loan Programs Office announced on December 16, 2024, that it has closed a direct loan of up to $9.63 billion to BlueOval SK LLC. The funding supports the construction of up to three electric vehicle battery manufacturing facilities: one in Tennessee and two in Kentucky. These plants will produce batteries for Ford Motor Company’s future Ford and Lincoln electric vehicles. This transaction marks the largest loan ever granted through the DOE’s Advanced Technology Vehicles Manufacturing Program.
What it means
The loan enables BlueOval SK, a joint venture between Ford Motor Company and South Korean battery manufacturer SK On, to expand its domestic production capacity. The three facilities will add more than 120 gigawatt-hours of annual U.S. battery production capacity. The project is designed to supply Ford’s growing electric vehicle product line with domestically produced batteries.
The construction phase of the three plants created more than 5,000 jobs. BlueOval SK partnered with the Tennessee College of Applied Technology in Tennessee and Elizabethtown Community and Technical College in Kentucky to support workforce development during construction. Once operational, the facilities are projected to create up to 7,500 operations jobs. The Loan Programs Office has been working with BlueOval SK to finalize this loan since June 2023. As of November 2024, the LPO had received 212 applications totaling over $324.3 billion in requested loans and loan guarantees across all its programs.
Key facts
- $9.63 billion direct loan amount to BlueOval SK LLC
- Up to three battery manufacturing plants: one in Tennessee, two in Kentucky
- More than 120 gigawatt-hours of annual U.S. battery production capacity added
- Over 5,000 construction jobs created during plant construction
- Up to 7,500 operations jobs to be created upon completion
- Largest loan granted through the Advanced Technology Vehicles Manufacturing Program
- Loan finalization process began in June 2023
- BlueOval SK is a joint venture between Ford Motor Company and SK On
Source: Department of Energy Loan Programs Office news release