Ford and SK On’s JV BlueOval SK receives record-breaking loan for U.S. battery plants

The U.S. Department of Energy (DOE) has finalized a direct loan of up to $9.63 billion to BlueOval SK LLC (BOSK), a joint venture between Ford Motor Company and Korean battery manufacturer SK On. The loan, part of the Advanced Technology Vehicles Manufacturing (ATVM) program, will fund the construction of three large-scale battery manufacturing plants in Tennessee and Kentucky. These facilities are expected to significantly enhance U.S. domestic battery production and create thousands of jobs while driving progress toward President Joe Biden’s ambitious climate goals.

Scaling U.S. Battery Production

The planned battery manufacturing plants will collectively produce more than 120 gigawatt-hours (GWh) of electric vehicle batteries annually, supporting the next generation of Ford and Lincoln EVs. The project has already employed over 5,000 construction workers during its build-out phase and is projected to generate up to 7,500 permanent operational jobs. This represents a major step in the Biden administration’s broader strategy to onshore critical manufacturing capabilities, reduce dependence on foreign suppliers like China, and achieve the target of making half of all new vehicles sold by 2030 zero-emissions.

BOSK’s work aligns with DOE’s mission to develop a robust supply chain for electric vehicle batteries. The DOE emphasized that expanding domestic battery production is vital to maintaining the U.S.’s global leadership in the EV market while supporting national and international climate commitments.

Community Investment and Workforce Development

In addition to bolstering EV supply chains, BOSK has committed to advancing local workforce development through its Community Benefits Plan (CBP). Partnerships with the Tennessee College of Applied Technology and Kentucky’s Elizabethtown Community and Technical College aim to create dedicated training programs for high-quality jobs at the new facilities. These efforts seek to ensure that local communities benefit directly from the economic opportunities created by the new battery manufacturing plants.

Largest ATVM Loan to Date

The $9.63 billion loan marks the largest single award in the history of the Advanced Technology Vehicles Manufacturing program, underlining the DOE’s increased focus on fostering innovation in EV technologies and manufacturing. Recent ATVM loans have covered a spectrum of projects, from mineral processing and electric vehicle batteries manufacturing to recycling initiatives, reflecting a comprehensive strategy to strengthen the EV ecosystem in the United States.

The DOE’s Loan Programs Office (LPO) has reported receiving 212 project applications nationwide as of November 2024, amounting to over $324.3 billion in requested funding. This surge in interest highlights growing private-sector alignment with government initiatives to accelerate clean energy transitions.

Driving the Future of EVs

BOSK’s venture is poised to play a central role in advancing the U.S. EV market by delivering electric vehicle batteries critical to Ford’s expanding electric lineup. The facilities represent a milestone in the nation’s shift toward sustainable transportation, signaling strong government and industry collaboration to meet rising EV demand while positioning the United States as a competitive player in the global clean energy market.