Global site navigation

Local editions

Ford-backed electric battery venture approved for $9.2bn US loan
Business and Economy

Ford-backed electric battery venture approved for $9.2bn US loan

by  AFP 2 min read
The new batter plants will create 5,000 construction jobs and 7,500 operations positions, officials say
The new batter plants will create 5,000 construction jobs and 7,500 operations positions, officials say. Photo: JEFF KOWALSKY / AFP/File
Source: AFP

PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ click on “Recommended for you” and enjoy!

A Ford joint venture to build three new electric vehicle battery plants is set to receive up to $9.2 billion in US federal loans under a program backed by President Joe Biden, officials announced Thursday.

The US Department of Energy announced a "conditional commitment for a loan" to BlueOval SK, a joint venture between Ford Motor and SK On, a South Korean battery manufacturer, to build the new plants in the southern states of Tennessee and Kentucky.

Biden has supported heavy public investment in such initiatives to address climate change and bolster US manufacturing.

Electricity from batteries produced at the plants will replace more than 455 million gallons of gasoline over the lifetime of the vehicles, said the agency's press release.

Read also

Cash-strapped Pakistan to lease part of Karachi port to UAE for $220 million

The projects will create 5,000 construction jobs and 7,500 operations positions once the plants are up and running, the agency said.

The Department of Energy's conditional commitment follows a due diligence process in which the agency brought in outside experts to review the application and develop a term sheet.

PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!

The final loan depends on the party meeting additional conditions, such as receiving approvals from local authorities, according to the agency.

In the case of the BlueOval project, the White House is demanding robust labor agreements and support for the Biden administration's "Justice40 Initiative," which requires that 40 percent of overall benefits go to disadvantaged communities, the press release said.

The Tennessee site is located in a disadvantaged community as are communities surrounding both Kentucky sites, the agency said.

Source: AFP

Authors:
AFP avatar

AFP AFP text, photo, graphic, audio or video material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP news material may not be stored in whole or in part in a computer or otherwise except for personal and non-commercial use. AFP will not be held liable for any delays, inaccuracies, errors or omissions in any AFP news material or in transmission or delivery of all or any part thereof or for any damages whatsoever. As a newswire service, AFP does not obtain releases from subjects, individuals, groups or entities contained in its photographs, videos, graphics or quoted in its texts. Further, no clearance is obtained from the owners of any trademarks or copyrighted materials whose marks and materials are included in AFP material. Therefore you will be solely responsible for obtaining any and all necessary releases from whatever individuals and/or entities necessary for any uses of AFP material.

Hot: