Jun 22, 2023 - Economy

Ford wins $9.2B DOE loan to build EV battery factories

Illustration of three batteries increasing in size overlaid with money and surrounded by abstract shapes.

Illustration: Gabriella Turrisi/Axios

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.
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