Ford has received a $9.2 billion contingent loan from the US Department of Energy to build three plants to manufacture batteries for future Ford and Lincoln electric vehicles.
The loan to the American automaker will help the U.S. reach net-zero electricity consumption by 2035 and electric vehicles account for half of all new car sales by 2030, the Energy Department said.
The loan will be made to BlueOval SK or BOSK, a joint venture between Ford and SK On, a South Korea-based electric vehicle battery manufacturer.
“The DOE’s commitment to this project will strengthen battery manufacturing in the United States while reducing carbon emissions,” said Dr. BlueOval SK CEO Robert Rhee in a statement. “BlueOval SK and our parent companies Ford and SK On are driving demand for batteries and the exciting vehicles they will power.”
Continue reading: How long does it take for an electric car to break even?
BOSK is building an electric vehicle battery plant in Tennessee and two in Kentucky. Battery production is scheduled to start in 2025.
Ford aims to produce 2 million electric vehicles annually worldwide by 2026.
If you’re thinking about buying an EV, you can read about CNET’s picks of the best electric cars and EVs for 2023, all EVs available in 2023 ranked by range, and how almost every EV qualifies for the $7,500 can tax credit for electric vehicles.
Continue reading: Toyota says its new battery will double the range of current electric vehicles