Ford Motor and South Korean battery maker SK On have received a loan from the U.S. Department of Energy to finance the construction of three new battery factories in Tennessee and Kentucky. The joint venture, known as Blue Oval SK, could obtain a loan of up to $9.2 billion under the government’s loan program for advanced technology vehicles. SK On is a unit of SK Innovation in South Korea. The three battery manufacturing plants being built in Kentucky and Tennessee will have a collective capacity of producing over 120 gigawatt hours per year. The project is expected to create around 5,000 construction jobs and 7,500 operations jobs once the factories start producing batteries. This loan follows a similar move last year when the ministry awarded $2.5 billion to a joint venture of General Motors and LG to fund the construction of lithium-ion battery cell manufacturing plants in Ohio, Tennessee, and Michigan.
How will the partnership between Ford Motor and SK On contribute to the advancement of battery technology?
Ford Motor and South Korean battery maker SK On have secured a loan from the U.S. Department of Energy to finance the construction of three new battery factories in Tennessee and Kentucky. This exciting partnership, known as Blue Oval SK, could receive a loan of up to $9.2 billion through the government’s loan program for advanced technology vehicles. SK On is a subsidiary of SK Innovation located in South Korea.
The three battery manufacturing plants being developed in Kentucky and Tennessee will have a combined capacity of producing over 120 gigawatt hours per year. This ambitious project is predicted to generate approximately 5,000 construction jobs and 7,500 operational jobs once the factories commence battery production.
It is important to note that this loan follows a similar development from last year, where the ministry granted $2.5 billion to a joint venture between General Motors and LG. The purpose of that loan was to support the construction of lithium-ion battery cell manufacturing plants in Ohio, Tennessee, and Michigan.
These significant investments highlight the growing importance of advancing battery technology and the commitment of both the public and private sectors to transition towards sustainable transportation.
This partnership between Ford Motor and SK to build a battery factory in Tennessee and Kentucky is a positive step towards strengthening the U.S. electric vehicle market. With the support of the Department of Energy, this joint venture holds potential to revolutionize the way we power our vehicles in the future. Exciting times ahead!
Great collaboration between Ford Motor and SK! The support from the U.S. Department of Energy is a significant step towards sustainable battery production in Tennessee and Kentucky. Looking forward to seeing the positive impact it will have on the electric vehicle market. #CleanEnergy