Blue Oval SK Loans receives $9.63 billion in loans

WASHINGTON – The U.S. Department of Energy said Monday it has completed a $9.63 billion loan to a joint venture between Ford Motor FN and South Korean battery maker SK On to build three new battery production facilities in Tennessee and Kentucky.

The low-cost government loan for the Blue Oval SK joint venture is the largest ever under the government’s loan program for the production of advanced technology vehicles. SK On is the battery unit of the energy group SK Innovation 096770.KS.

The amount is higher than the $9.2 billion conditional commitment announced in June 2023 and comes just weeks before President-elect Donald Trump takes office. Trump and his advisers have been critical of the Biden administration’s efforts to incentivize electric vehicle production.

The joint venture is building battery production facilities in Kentucky and Tennessee that will enable annual U.S. battery production of more than 120 gigawatt hours.

Blue Oval SK said it has invested more than $11 billion to date to build the three 4 million-square-foot facilities and plans to begin production at its first plant in Kentucky in 2025, becoming ready by the end of the year be expected to begin production in Tennessee in 2025.

Earlier this month, the DOE said it plans to loan up to $7.54 billion to Chrysler parent Stellantis STLAM.MI and Samsung SDI 006400.KS joint venture StarPlus Energy to help build two plants for lithium-ion batteries for electric vehicles in Indiana.

The conditional commitment remains to be completed and includes $6.85 billion of principal and $688 million of capitalized interest

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Blue Oval SK Loans receives $9.63 billion in loans

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