Ford has received a conditional $9.2 billion loan from the US Department of Energy to 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.
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
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