Loan will support the building of 3 Ford-SK battery plants in Kentucky and Tennessee.

In another sweeping step in support of the transportation industry's e-mobility transition and domestic infrastructure for electric vehicle and battery production, the U.S. Department of Energy has committed a loan of up to $9.2 billion to BlueOval SK LLC for the construction of three manufacturing plants to produce batteries for Ford Motor Company's future Ford and Lincoln EVs.

"The DOE's commitment to this project will strengthen battery manufacturing in the U.S. while reducing carbon emissions, providing customers with high-performance vehicles, and creating good jobs for future generations," BlueOval SK CEO Robert Rhee said. "BlueOval SK and our parent companies, Ford and SK On, are expanding demand for batteries and the exciting vehicles they will power. This federal loan from the DOE helps with that mission."

Replacing fossil fuel

The announcement is one of several conditional commitments in the last year under the DOE's Advanced Technology Vehicles Manufacturing Loan Program for building a strong domestic supply chain.

Expanding domestic production of American-made batteries is vital to achieving the White House's goals of having EVs account for 50% of car sales in the U.S. by 2030, reaching net-zero electricity by 2035, and establishing a net-zero economy by 2050.

The three plants supported by the enormous DOE loan – one located in Tennessee and two in Kentucky – will collectively produce enough battery power to replace over 455 million gallons of gasoline per year for the lifetime of the vehicles produced, more than 120-gigawatt hours annually.

This increase in battery production capacity is one of the key aspects of Ford's plan to improve its global annual production run to 2 million electric vehicles by the end of 2026 and is the foundation for Ford's long-term electrification strategy.

Creating a foundation

BlueOval SK, a joint venture between Ford and SK On, is partnering with state governments through Ford's workforce development team to support new technical schools in Kentucky and Tennessee with curricula to train local community members to help fill the 7,500 operations jobs at the battery plants.

In April, Kentucky Gov. Andy Beshear, BlueOval, Ford, and community representatives broke ground for the Elizabethtown Community and Technical College BlueOval SK Training Center, a campus in Glendale, Kentucky, where thousands of employees will gain the skills required to work at the battery plants in Glendale.

"The partnership between Kentucky and Ford dates back more than a century, to the very dawn of the automobile industry. That bond grows even stronger today as we break ground on Ford and SK On's BlueOval SK Battery Park in Hardin County. As both the largest economic development project in our state's history and part of the biggest investment ever by Ford, this project cements Kentucky's status as the electric vehicle battery production capital of the United States," said Beshear.

The 42,000-square-foot training center is the only co-branded program within the Kentucky Community College System and represents a $25 million investment by the Commonwealth of Kentucky.

"At BlueOval SK Battery Park, we're building the future – state-of-the-art batteries for future Ford and Lincoln electric vehicles and a bright future for the workforce in Kentucky. In order to produce these batteries, we need a premier workforce that is trained in the latest battery and advanced manufacturing technology," said David Hahm, BlueOval SK CEO.

The BlueOval City Tennessee College of Applied Technology is the result of a $40 million investment by the State of Tennessee, where students will have the opportunity to engage in hands-on learning with the same tools used at the battery plant in Stanton.

"We're grateful for these partnerships with local stakeholders and excited about the workforce opportunities coming to Tennessee and Kentucky," BlueOval SK Human Resources Director Neva Burke said.

BlueOval is actively developing a local network of suppliers and working to ensure the availability of skilled labor for the roughly 5,000-man workforce that will be needed for construction, with DOE oversight to create well-paid jobs with strong labor standards during construction and operations as well as maintaining adherence to a strong community benefits plan.

"Ford's roots run deep in Kentucky, and BlueOval SK is going to help Ford to lead the EV revolution, bringing thousands of new, high-tech jobs to the Bluegrass State. Ford is building on more than a century of investment in Kentucky and its incredible workforce," said Lisa Drake, vice president of Ford EV Industrialization.

Investing in the future

The DOE's Loan Programs Office provides funds and support to select projects related to fuel-efficient vehicles and eligible component manufacturing, critical mineral and battery supply chains and involved mineral processing, battery manufacturing and recycling.

While this conditional commitment demonstrates the DOE's intent to finance BlueOval, several steps remain for the project to reach critical milestones, and certain conditions must be satisfied before the final loan is issued. Find more information on the conditional commitment here.

"This is all about Ford leading our whole industry into the future. For most of the last hundred years it hasn't changed a lot, there've been a series of evolutions but very few revolutions. This changes everything now," said Bill Ford, Executive Chair at Ford Motor Company.

Construction is on schedule at the BlueOval battery plants in Kentucky and Tennessee, with battery production on time to begin in 2025.