Huge battery plants planned in Tennessee and Kentucky that will produce Ford’s electric vehicles and components for EVs are on track to receive a $9.2 billion loan from the U.S. government, the largest loan to be awarded by the U.S. Department of Energy since President Joe Biden took office.
The money will be awarded via the Advanced Technology Vehicles Manufacturing Loan Program to BlueOval SK, a new joint business venture established by Ford and South Korean battery manufacturer SK On that is spearheading the battery plants’ construction and operation. BlueOval SK will receive the $9.2 billion investment from the government once it meets certain job creation milestones.
Besides two battery plants, Ford and SK On are planning to build a Ford assembly plant in Tennessee that is capable of manufacturing up to 500,000 electric pickup trucks annually. The total investment for all three projects is expected to be around $11.4 billion.
The hope is that the three facilities will create 5,000 construction jobs as well as 7,500 operational jobs once the plants are up and running, according to a June 21 statement made by the Department of Energy.
“We’re thrilled the Department of Energy joins BlueOval SK in our vision to electrify the future of mobility,” said Robert Rhee, BlueOval SK’s CEO, in a statement to media outlets. “BlueOval SK will use this loan to its fullest as we create 7,500 good American jobs, strengthen critical domestic supply chains and produce high-quality batteries for future Ford and Lincoln electric vehicles here in Tennessee and Kentucky.”
Ford has said that its Stanton, Tennessee battery plant will employ about 6,000 people following an investment of almost $5.6 billion. Production at that facility will begin in 2025.
Production at the other two plants in Glendale, Kentucky is also expected to start in 2025 and will reportedly employ about 5,000 people. Ford and SK On have invested a combined $5.8 billion in the Kentucky projects.
