Revving Up: U.S. Bets Big on Battery Manufacturing

The U.S. Energy Department has finalized a $9.63 billion loan to Ford and South Korea's SK On to build battery plants in Tennessee and Kentucky. This significant investment supports EV production and aligns with the Advanced Technology Vehicles Manufacturing program aimed at increasing U.S. battery output.

The U.S. Energy Department announced on Monday the finalization of a record $9.63 billion loan to a partnership between Ford Motor Company and South Korean battery manufacturer SK On. This funding aims to support the construction of three massive battery manufacturing plants located in Tennessee and Kentucky, marking the largest loan disbursed from the Advanced Technology Vehicles Manufacturing program to date.

This agreement comes shortly before the inauguration of President-elect Donald Trump, who, along with his advisors, has been vocal about their opposition to the Biden administration's push for increased electric vehicle production. The joint venture, known as Blue Oval SK, seeks to enhance U.S. battery production capacity to over 120 gigawatt hours annually through these new facilities.

The project represents an investment exceeding $11 billion into the sprawling battery plants destined for production starts in 2025. The collaborative efforts are part of a series of loans by the DOE to bolster America's EV manufacturing capabilities, contributing to what could be a transformative period for the industry.

(With inputs from agencies.)