The U.S. Department of Energy (DOE) has finalized a $9.63 billion loan to fund a joint venture between Ford Motor and South Korean battery maker SK.
The loan for the construction of three new battery manufacturing plants in Tennessee and Kentucky is the largest from the Advanced Technology Vehicles Manufacturing loan program. The plan was originally announced in 2023.
“Together, the plants, one located in Tennessee and two in Kentucky, will enable more than 120 gigawatt hours of U.S. battery production annually and displace more than 455 million gallons of gasoline per year for the lifetime of the vehicles powered by these batteries. The project is expected to create a total of approximately 5,000 constructions jobs in Tennessee and Kentucky, and 7,500 operations jobs once the plants are up and running.” The Department of Energy said.
The joint venture has invested over $11 billion in the construction of the facilities. Production is expected to begin in Kentucky and Tennessee in 2025.
The DOE also recently announced plans to loan up to $7.54 billion to the StarPlus Energy joint venture (Stellantis and Samsung SDI) for two EV battery plants in Indiana. In December 2022, they finalized a $2.5 billion loan for a joint venture between General Motors and LG Energy Solution for three battery manufacturing facilities in Ohio, Tennessee, and Michigan.
The investment is part of President Biden’s Investing in America scheme to onshore and re-shore domestic manufacturing of clean energy technologies.
By CEO NA Editorial Staff
