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Released June 26, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. Department of Energy (DOE) has announced a conditional loan of $9.2 billion for Ford Motor Company's (NYSE:F) (Dearborn, Michigan) electric vehicle (EV) battery joint venture, BlueOvalSK, LLC, which will build and operate one manufacturing plant in Tennessee and two more in Kentucky. This is yet another EV battery-related loan handed out through the agency's Advanced Technology Vehicles Manufacturing (ATVM) Loan Program.
Ford's 50:50 joint venture is with SK Innovation Company Limited (Seoul, South Korea) and will supply EV batteries to Ford and its affiliates. The deal was finalized last year, and according to a filing document with the U.S. Securities and Exchange Commission (SEC), Ford will contribute up to $6.6 billion in capital spending to the joint venture over five years--subject to any agreed-upon adjustments.
Industrial Info is tracking the three projects that received the conditional loan commitment, all of which are already under construction. "Several steps remain for the project to reach critical milestones, and certain conditions must be satisfied before DOE issues a final loan," the agency said in a press release.
The joint venture's two Kentucky plants have a combined investment value of $5.8 billion, total 8,000,000 square feet, and are at the BlueOval SK Battery Park in Glendale, which sits on more than 1,500 acres about 50 miles southeast of Louisville; the plants will provide Ford's North American plants with batteries for its future Ford and Lincoln-brand EVs. The $3.4 billion Phase 1 kicked off in October of last year, with completion expected in 2025. The $2.3 billion Phase 2 is expected to kick off in 2024, with completion in 2026. Barton Malow Company (Southfield, Michigan) and Gray Construction Company (Lexington, Kentucky) are providing joint general contracting services, with Barton Malow serving as the lead contractor.
Meanwhile, construction of the $2.9 billion battery-manufacturing plant in Stanton, Tennessee kicked off in March of last year, with first production expected in 2025. The plant, which sits on a 3,600-acre site, will supply batteries for Ford's lineup of fully electric F-Series trucks.
The DOE's loan is through its Loan Programs Office (LPO). According to a related press release, the plants will provide more than 120 gigawatt hours of U.S. battery production annually and "displace more than 455 million gallons of gasoline per year for the lifetime of the vehicles powered by these batteries."
The Stanton plant is adjacent to Ford's fully owned electric truck manufacturing facility, which also is under construction, to manufacture an expanded lineup of the electric F-Series trucks.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing project and plant databases can click here to read detailed information on the projects mentioned in this article and click here for a list of plant profiles.
The loan is one of several recent conditional loans through the DOE's ATVM program, which also provides loans for critical mineral-mining and battery-recycling operations. For more information, see Industrial Info's June 12, 2023, article - Biden Administration Hands Out Another Loan to Support Domestic EV Battery Production.
In terms of Ford's efforts to source critical minerals for EV battery production, the automaker signed a purchase agreement with Nemaska Lithium Incorporated (Montreal, Quebec) earlier this year for the delivery of up to 13,000 tons of lithium hydroxide per year. And last year, Ford announced a series of non-binding memorandums of understanding (MOUs) with other mining companies. For more information, see Industrial Info's July 26, 2022, article - Ford Announces Mining MOUs to Support EV Batteries.
Last year, Ford announced it plans to spend $50 billion on EVs through 2026 and separate its EV business from the combustion engine division.
Industrial Info is tracking 37 active Ford projects, worth more than $20 billion, in North America. Subscribers can click here to see a full list.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Ford's 50:50 joint venture is with SK Innovation Company Limited (Seoul, South Korea) and will supply EV batteries to Ford and its affiliates. The deal was finalized last year, and according to a filing document with the U.S. Securities and Exchange Commission (SEC), Ford will contribute up to $6.6 billion in capital spending to the joint venture over five years--subject to any agreed-upon adjustments.
Industrial Info is tracking the three projects that received the conditional loan commitment, all of which are already under construction. "Several steps remain for the project to reach critical milestones, and certain conditions must be satisfied before DOE issues a final loan," the agency said in a press release.
The joint venture's two Kentucky plants have a combined investment value of $5.8 billion, total 8,000,000 square feet, and are at the BlueOval SK Battery Park in Glendale, which sits on more than 1,500 acres about 50 miles southeast of Louisville; the plants will provide Ford's North American plants with batteries for its future Ford and Lincoln-brand EVs. The $3.4 billion Phase 1 kicked off in October of last year, with completion expected in 2025. The $2.3 billion Phase 2 is expected to kick off in 2024, with completion in 2026. Barton Malow Company (Southfield, Michigan) and Gray Construction Company (Lexington, Kentucky) are providing joint general contracting services, with Barton Malow serving as the lead contractor.
Meanwhile, construction of the $2.9 billion battery-manufacturing plant in Stanton, Tennessee kicked off in March of last year, with first production expected in 2025. The plant, which sits on a 3,600-acre site, will supply batteries for Ford's lineup of fully electric F-Series trucks.
The DOE's loan is through its Loan Programs Office (LPO). According to a related press release, the plants will provide more than 120 gigawatt hours of U.S. battery production annually and "displace more than 455 million gallons of gasoline per year for the lifetime of the vehicles powered by these batteries."
The Stanton plant is adjacent to Ford's fully owned electric truck manufacturing facility, which also is under construction, to manufacture an expanded lineup of the electric F-Series trucks.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing project and plant databases can click here to read detailed information on the projects mentioned in this article and click here for a list of plant profiles.
The loan is one of several recent conditional loans through the DOE's ATVM program, which also provides loans for critical mineral-mining and battery-recycling operations. For more information, see Industrial Info's June 12, 2023, article - Biden Administration Hands Out Another Loan to Support Domestic EV Battery Production.
In terms of Ford's efforts to source critical minerals for EV battery production, the automaker signed a purchase agreement with Nemaska Lithium Incorporated (Montreal, Quebec) earlier this year for the delivery of up to 13,000 tons of lithium hydroxide per year. And last year, Ford announced a series of non-binding memorandums of understanding (MOUs) with other mining companies. For more information, see Industrial Info's July 26, 2022, article - Ford Announces Mining MOUs to Support EV Batteries.
Last year, Ford announced it plans to spend $50 billion on EVs through 2026 and separate its EV business from the combustion engine division.
Industrial Info is tracking 37 active Ford projects, worth more than $20 billion, in North America. Subscribers can click here to see a full list.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
