The Department of Energy bolsters American EV battery production with a significant investment in BlueOval SK.
The U.S. Department of Energy’s Loan Programs Office (LPO) recently announced a conditional commitment for a loan of up to $9.2 billion to BlueOval SK LLC (BOSK), a significant entity in the EV battery sector.
BlueOval SK’s integral role in the U.S. EV industry
BOSK, a joint venture between Ford Motor Company and SK On, a renowned Korean EV battery manufacturer, was formed to supply Ford with batteries for its burgeoning EV product line. BOSK is central to the growth of the industry’s domestic landscape.
Investing in a future of clean energy and transportation
This financial commitment echoes the goals of President Biden’s Investing in America agenda, aimed at reinforcing domestic manufacturing of critical technologies. Aiming for EVs to comprise at least 50% of all new car sales in the U.S. by 2030, enhancing domestic production of American-made batteries is essential.
Economic impact of the project
The proposed construction of three manufacturing plants in Tennessee and Kentucky is projected to generate around 5,000 construction jobs. Furthermore, once operational, the plants are expected to create 7,500 jobs in the regions. Such growth supports local economies and contributes to the broader objective of creating good-paying jobs with strong labor standards.
Workforce development and community benefits
BOSK has also partnered with the Tennessee and Kentucky state governments to develop curricula supporting new technical schools. This initiative, aimed at training community members for quality jobs at the upcoming facilities, showcases BOSK’s commitment to workforce development and community benefits.
Alignment with the Justice40 initiative
The project aligns with President Biden’s Justice40 Initiative, with both the Tennessee and Kentucky sites committed to fulfilling the policy’s objective to benefit disadvantaged communities.
Looking ahead: The path to a charged future
In comparison to the loans provided to Ford during the last financial crisis, this investment signifies a strategic and forward-thinking approach to economic recovery. Instead of merely stabilizing a traditional industry, this loan seeks to cultivate innovation and technological advancements, securing America’s competitive edge in the global EV market.
By bolstering domestic battery production, this loan is not only supporting immediate job creation but also investing in the infrastructure required for a sustainable, clean-energy future. The decision by the LPO to support BOSK, therefore, is more than an economic stimulus — it’s a step towards securing America’s long-term interests in the global clean energy landscape.