Ford Motor and its battery manufacturing partner will receive a $9.2 billion loan to build three battery factories in Kentucky and Tennessee, the Department of Energy said Thursday. The loan would be the single biggest financial commitment the Biden administration has made in its effort to build an electric vehicle manufacturing network in the United States.
The loan will go to a joint venture created by Ford and its partner SK On called BlueOval SK that will supply batteries for electric Ford and Lincoln cars and trucks. The factories, one in Tennessee and two in Kentucky, will employ 7,500 people and are among the largest such plants being built by auto and battery companies across the country, especially in Southern states.
President Biden aims for half of new cars sold in the United States to be electric by the end of the decade, up from about 7 percent in the first three months of this year. By helping to finance battery factories, the administration hopes to ensure that the United States does not become dependent on China for batteries and their components. The administration also hopes the new plants will help make up for the loss of jobs in conventional auto manufacturing.
This is a developing story. Check back for updates.
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