The U.S. Department of Energy (DOE) has finalized a $9.63 billion direct loan to Ford Motor Co.’s electric vehicle battery joint venture, BlueOval SK, as announced in a December 16 press release. These funds will be used to support the construction of up to three electric vehicle battery plants across the U.S. — two in Kentucky and one in Tennessee.

This loan is the largest ever granted under the DOE's Advanced Technology Vehicles Manufacturing Loan Program, which aims to strengthen U.S. domestic production of electric vehicles and their components, ensuring the country remains competitive in the global EV market. The three planned facilities are projected to produce over 120 gigawatt hours of battery capacity annually for Ford.

The joint venture with South Korea's SK On aims to supply Ford with a stable and domestic source of batteries for its EV lineup, with production expected to begin in 2025. In addition to supporting battery manufacturing, the DOE’s Loan Programs Office also funds U.S. initiatives for battery mineral processing and recycling. The funds are available to eligible companies until September 30, 2028.

The three new plants are set to create over 5,000 construction jobs and up to 7,500 operational positions once they are fully running. A condition for companies receiving funding through the DOE’s program is the development of a community benefits plan, which includes job training initiatives for local workers. In line with this requirement, BlueOval SK has partnered with the Tennessee College of Applied Technology and Elizabethtown Community and Technical College in Kentucky to offer training for future employees. Ford is actively hiring production workers for these new plants.

Separately, Ford has also secured a battery supply agreement with LG Energy Solution in Europe. This deal, starting in 2026, will supply an estimated 109 gigawatt hours of batteries for Ford’s commercial EVs over a four-to-six-year period. Under this agreement, production of batteries for the Mustang Mach-E will shift from LG’s Poland facility to its Michigan plant in 2025.

Alongside Ford, General Motors (GM) has also benefited from the DOE’s loan program. In December 2022, GM’s joint venture with LG Energy Solution, Ultium Cells, received a $2.5 billion loan commitment to establish EV battery plants in Ohio, Tennessee, and Michigan. However, GM recently announced it would sell its stake in the Michigan plant to LG Energy Solution as part of its strategy to manage battery production capacity and costs as the EV sector expands.