The US Energy Department approved its largest-ever clean vehicle loan to BlueOval SK, backing the Ford Motor Co. and SK On battery venture with $9.63 billion in federal support.
The joint venture plans to build three manufacturing facilities – one in Tennessee and two in Kentucky – targeting a combined annual production capacity of over 120 gigawatt hours of batteries for Ford and Lincoln electric vehicles.
The federal backing comes as automakers race to secure domestic battery supply chains, spurred by government incentives aimed at reducing dependence on Chinese manufacturers. The loan was granted through the department’s Advanced Technology Vehicles Manufacturing Program.
BlueOval SK expects to create up to 7,500 permanent jobs across the three locations, following more than 5,000 construction positions during the building phase. The venture pairs Ford’s automotive expertise with SK On’s battery manufacturing capabilities.
The loan represents a significant boost to Ford’s electrification strategy as the automaker aims to expand its electric vehicle lineup. The company faces growing competition from both traditional automakers and EV-focused manufacturers in the US market.
