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BlueOval SK Gets $9.63B DOE Loan for U.S. EV Battery Plants

The Department of Energy (DOE) has approved its largest-ever loan, amounting to $9.63 billion, to BlueOval SK LLC (BOSK) for the construction of three electric vehicle (EV) battery plants. These plants, located in Tennessee and Kentucky, will produce batteries for Ford Motor Company’s expanding electric vehicle lineup, including both Ford and Lincoln models. With a total annual capacity of 120 GWh, the facilities will play a key role in boosting domestic EV production, helping meet the increasing demand for electric vehicles in the U.S.

The project will also create significant job opportunities, with over 12,500 positions expected to be generated, including 7,500 operational roles once the plants are completed. In addition to job creation, this initiative aligns with the Biden-Harris Administration’s goal to make half of all new vehicles sold in the U.S. zero-emission by 2030, supporting the country’s broader efforts to increase domestic EV manufacturing and enhance global competitiveness.

(Image: BOSK Tennesee plant, Courtesy BOSK)

The DOE emphasized that expanding domestic battery production is vital for reducing reliance on foreign nations, particularly China. The construction of these plants has already led to the creation of 5,000 jobs, with additional training programs established in partnership with local educational institutions like Tennessee College of Applied Technology and Elizabethtown Community and Technical College in Kentucky. These programs are designed to prepare workers for quality roles at the new facilities, helping to strengthen local communities.

This project also reinforces the U.S.’s leadership in the global EV market and supports the nation’s climate commitments. The DOE’s Advanced Technology Vehicles Manufacturing (ATVM) Loan Program, which is funding this initiative, plays a crucial role in building a domestic EV supply chain. Recent funding from the program has focused on critical areas such as mineral processing, battery manufacturing, and recycling to strengthen the U.S. EV sector.

BlueOval SK, a joint venture between Ford and the Korean battery manufacturer SK On, combines U.S. innovation with global expertise to ensure that America remains competitive in the fast-growing EV market. The project is expected to be finalized by 2030, further solidifying the U.S.’s position at the forefront of clean energy innovation while fostering economic growth and reducing dependence on foreign suppliers. Battery production is on schedule to begin at the first Kentucky plant in 2025 and BOSK expects to be ready to begin production in Tennessee in late 2025.

(Image: BOSK Kentucky plant, Courtesy BOSK)

On September 27, 2021, Ford Motor Company announced ambitious plans to bring electric vehicles (EVs) to American customers at scale with the creation of two massive, environmentally and technologically advanced campuses in Tennessee and Kentucky. These campuses are central to the production of next-generation electric F-Series trucks and the batteries needed to power future Ford and Lincoln vehicles. This initiative represents Ford’s largest-ever investment in EVs in the U.S., totaling $11.4 billion, and is set to create nearly 11,000 new jobs, significantly strengthening local communities and bolstering Ford’s position as a leading employer of hourly autoworkers.

The centerpiece of the plan is the development of BlueOval City, a new $5.6 billion mega-campus located in Stanton, Tennessee. This facility is set to create around 6,000 jobs and will transform the way vehicles and batteries are manufactured. BlueOval City will become a vertically integrated ecosystem, where Ford will assemble an expanded lineup of electric F-Series trucks. It will also house a BlueOval SK battery plant, key suppliers, and recycling operations. The Tennessee facility is designed to be carbon neutral and achieve zero waste to landfill once fully operational.

In central Kentucky, Ford, in partnership with SK Innovation, created the $5.8 billion BlueOval SK Battery Park. This dedicated battery manufacturing complex will create 5,000 new jobs. The site will feature twin battery plants designed to supply Ford’s North American assembly plants with locally assembled batteries for the next generation of electric Ford and Lincoln vehicles.

The Elizabethtown Community and Technical College (ECTC) BlueOval SK Training Center

The ECTC BlueOval SK Training Center provides education and training to support the development of advanced battery manufacturing skills, specifically for the production of batteries used in Ford and Lincoln electric vehicles. The center’s curriculum will focus on key areas such as battery knowledge, technical skills, quality control, and manufacturing processes. Employees will be trained in SK On’s proprietary techniques and standards for battery assembly and production, ensuring they are equipped with the necessary expertise to meet industry requirements.

In addition to general training in battery technology, the center will offer specialized instruction in areas such as industrial maintenance, ergonomics, and the use of advanced tools. The training will take place in various high-tech facilities, including virtual reality labs for immersive learning, industrial maintenance labs for hands-on experience, and work simulation labs to replicate real-world scenarios.

The ECTC BlueOval SK Training Center officially opened in June 2024, following construction that began in 2023. This $35 million investment by the state of Kentucky aims to provide the skilled workforce needed for the growing electric vehicle industry, particularly in the field of battery manufacturing.

BlueOval SK represents a crucial step in Ford’s commitment to sustainable, electric mobility and its strategy to become a leader in the global electric vehicle market, all while supporting U.S. climate goals and economic growth. See information about hiring and other information on the BOSK site.