Ford wins $9.2B DOE loan to build EV battery factories
Auto giant Ford has won a conditional commitment for a $9.2 billion Department of Energy loan to build three factories to make batteries for electric vehicles.
Why it matters: The loan is one of the largest ever to come out of the Department of Energy's loan program's office, a department that previously funded Tesla, and is part of the Biden administration's effort to kickstart an American EV manufacturing wave.
Details: The DOE offered the loan to BlueOval SK LLC, a joint venture between Ford and Korean EV battery maker SK On.
- The funds will be used to build three factories (two in Kentucky and one in Tennessee) that will churn out batteries for Ford and Lincoln-branded EVs.
- The DOE says the funds will create 5,000 construction jobs, and 7,500 operating jobs.
What we're watching: The massive loan is the latest to come out of the Department of Energy's Loan Programs Office, a department essentially unfrozen by the Biden administration and led by climate tech entrepreneur Jigar Shah.
- The Biden administration is using the loan office — in combination with the IRA — to attempt to ignite a domestic manufacturing boom around electric vehicles, EV batteries and a battery supply chain.