Ford receives $9.2B government loan for EV batteries, biggest since 2009 bailouts.

The Department of Energy’s $9.2 Billion Loan to Ford and Battery Partner to Boost U.S. Electric Vehicle Manufacturing

The Department of Energy (DOE) is making a bold move to support the growth of electric vehicle (EV) manufacturing in the United States. In a conditional loan agreement, Ford and its battery manufacturing partner will receive a staggering $9.2 billion to construct three state-of-the-art EV battery plants in Tennessee and Kentucky. This significant cash infusion aims to enhance domestic battery manufacturing capabilities and compete head-on with China.

This loan agreement, granted by the DOE’s Loan Programs Office, marks the largest government loan ever given to a U.S. automaker since the 2009 financial crisis and subsequent auto industry bailout. It demonstrates the Biden administration’s commitment to building a robust EV and battery manufacturing supply chain to achieve its ambitious goal of having 50% of all new cars sold in the U.S. be electric vehicles by 2030. Currently, EVs account for approximately 7% of total car sales in the country.

Creating Jobs and Strengthening the U.S. Economy

The construction of these new BlueOval SK plants is expected to generate around 5,000 construction jobs and 7,500 operating jobs once the facilities are fully operational. This boost in employment opportunities will not only benefit the local communities but also contribute to the overall growth of the U.S. economy.

Jigar Shah, the head of the DOE’s Loan Programs Office, emphasized the importance of this loan in promoting domestic supply chains. He stated, “Our goal is to have people choose to put these supply chains here in the United States, not in other countries, and to do them faster and more confidently here.”

The Loan Programs Office, as mandated by the Inflation Reduction Act, is responsible for overseeing the distribution of approximately $400 billion in new loans. This strategic investment in EV battery manufacturing is a crucial step towards reducing dependence on foreign markets and establishing the United States as a global leader in clean transportation.

With this massive financial support from the DOE, Ford and its battery manufacturing partner are poised to revolutionize the EV industry, accelerate innovation, and drive the transition to a more sustainable future.