Ford Gets $9.2B From Department of Energy to Build 3 EV Battery Plants
The conditional loan will help Ford reach its goal to produce 2 million EVs annually by 2026.
Ford has received a conditional loan of $9.2 billion from the US Department of Energy to help it construct three plants that will produce batteries for future Ford and Lincoln electric vehicles.
The loan for the American car manufacturer will help the US reach net zero electricity by 2035, and have EVs make up half of all new car sales by 2030, the Energy Department said.
The loan will be provided to BlueOval SK, or BOSK, a joint venture between Ford and SK On, a South Korean-based EV battery manufacturer.
"The DOE's commitment to this project will strengthen battery manufacturing in the US while reducing carbon emissions," BlueOval SK CEO Dr. Robert Rhee said in a statement. "BlueOval SK and our parent companies, Ford and SK On, are expanding demand for batteries and the exciting vehicles they will power."
Read more: How Long Does It Take to Break Even on an Electric Car?
BOSK is building one EV battery plant in Tennessee and two in Kentucky, with battery production scheduled to begin in 2025.
Ford intends to produce 2 million EVs annually globally by 2026.
Ford EV owners will soon be able to use Tesla Superchargers -- starting in early 2024, Ford electric cars will be able to use a hardware adapter and from 2025 they'll have Tesla charging ports built in. Rival carmaker GM has also signed on for Tesla Supercharger compatibility in a combined effort that should see higher adoption of EVs across the US.
If you're looking into buying an EV, you can read more about CNET's picks for the best electric cars and EVs for 2023, as well as every EV available in 2023, ranked by range and how almost any electric vehicle can qualify for the $7,500 EV tax credit.
Read more: Toyota Says Its New Battery Will Double the Range of Current EVs
- I've been covering technology and mobile for 12 years, first as a telecommunications reporter and assistant editor at ZDNet in Australia, then as CNET's West Coast head of breaking news, and now in the Thought Leadership team.
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- I've been covering technology and mobile for 12 years, first as a telecommunications reporter and assistant editor at ZDNet in Australia, then as CNET's West Coast head of breaking news, and now in the Thought Leadership team.