In a significant move to strengthen domestic EV battery manufacturing, the US has announced the closing of a monumental $9.63bn direct loan to BlueOval SK LLC (BOSK).
The funding, provided by the Department of Energy’s (DOE) Loan Programs Office (LPO), supports the construction of three large-scale EV battery production plants in Tennessee and Kentucky.
These facilities will produce batteries for Ford Motor Company’s future Ford and Lincoln electric vehicles (EVs), marking a major step in the nation’s transition to clean energy.
The DOE’s loan to BOSK is the largest loan to date under the Advanced Technology Vehicles Manufacturing (ATVM) Loan Program.
The initiative is designed to fund projects that promote fuel-efficient vehicles and their components, creating a stronger domestic EV supply chain.
Over the past year, the DOE’s LPO has approved multiple loans spanning critical mineral processing, battery production, and recycling, further solidifying the US as a leader in the EV industry.
Three high-impact EV battery production plants
The BOSK initiative involves the construction of three state-of-the-art EV battery manufacturing plants – one located in Tennessee and two in Kentucky.
Once operational, these facilities will collectively enable significant US battery production annually, meeting the surging demand for electric vehicles.
Importantly, this investment has already generated more than 5,000 construction jobs during the building phase and will provide up to 7,500 high-quality operational jobs in the coming years.
This initiative highlights the government’s commitment to bolstering US manufacturing, creating sustainable jobs, and positioning the nation as a global leader in EV technologies.
Why EV battery manufacturing matters for the US
The push for domestic EV battery manufacturing is critical for several reasons:
- Reducing foreign dependence: For years, the United States has relied heavily on foreign countries, particularly China, for battery production and related materials. By advancing domestic EV battery manufacturing, the US can reduce its dependence on adversarial nations and build a resilient supply chain.
- Achieving climate goals: A robust battery production infrastructure is essential to meeting national climate commitments and ensuring that electric vehicle adoption accelerates to reduce carbon emissions. These plants will play a pivotal role in supporting Ford’s expanding EV lineup and advancing clean energy transportation.
- Driving economic growth: Investments in EV battery production stimulate the economy, create thousands of jobs, and provide pathways to careers in advanced manufacturing, engineering, and technical fields. Communities in Tennessee and Kentucky stand to benefit immensely from this initiative.
BlueOval SK: A strategic partnership
BOSK, a joint venture between Ford Motor Company and SK On, a globally renowned Korean EV battery manufacturer, was established to ensure Ford’s growing electric vehicle lineup has a reliable supply of high-quality batteries.
With this loan, BOSK is well-positioned to ramp up production and meet rising consumer demand for electric vehicles.
In collaboration with local educational institutions, BOSK is also investing in workforce development. Through a Community Benefits Plan (CBP), BOSK has partnered with Tennessee College of Applied Technology and Elizabethtown Community and Technical College in Kentucky.
These institutions are developing programmes to train workers for high-quality jobs at the new BOSK facilities, ensuring that local residents are equipped with the skills needed for the future of EV manufacturing.
Building a resilient domestic supply chain
As the global demand for electric vehicles grows exponentially, securing a domestic supply chain for EV batteries is paramount.
By investing in projects like BOSK’s battery plants, the US is taking proactive steps to onshore EV battery manufacturing capabilities.
This move ensures the US can compete with other nations in the race for clean energy dominance while reducing vulnerabilities tied to foreign supply chains.
As the US accelerates its transition to zero-emissions vehicles, projects like BOSK’s battery plants ensure that the country remains at the forefront of innovation, sustainability, and economic growth.
