Although Ford has been scaling back its once-ambitious EV plans, it’s moving ahead with building three new battery manufacturing plants in the United States, according to our friends at Ford Authority. This is thanks to a $9.63 billion loan that the U.S. Energy Department finalized on Monday.
The battery plants going up in Tennessee and Kentucky are part of a joint venture between Ford and South Korean battery maker SK On. The final amount is actually about $400,000 more than the original conditional commitment from the Energy Department announced in June 2023.
“This program is essential to getting people to choose the United States of America,” said Jigar Shah, who heads the DOE Loan Programs office, according to Reuters. “When you look at the competition that we have from China, it is very clear to me that they have used low-cost debt for a very long time to promote a lot of manufacturing capacity that has hollowed out many communities in Kentucky, Tennessee, and other states around the country.”
EV battery production at the new Kentucky plant is slated to begin in Q1 2025, but the next-generation Ford F-150 EV won’t go online at BlueOval City in Tennessee until 2027.
This is part of an effort from the Biden Administration’s Energy Department to finalize its commitments before President Donald Trump’s second term begins in January. As we reported in October, shortly before the U.S. Presidential election, U.S. Energy Secretary Jennifer Granholm said, “We are working as fast as we can to finalize as much as we can – to get the commitments in contract with all of those who have been selected…We have a few months to make sure that we’re doing that.” Another part of that effort is the $500 million grant from the government to convert the GM Lansing Grand River plant into an EV factory.
As for the Blue Oval’s recent EV plans, Ford announced in August it would release a midsize electric pickup truck in 2027, but in the same month, it canceled plans for electric 3-row crossovers in the vein of the Ford Explorer and Lincoln Aviator. This was a few months after Ford announced a delay in its next generation of EVs to focus efforts on hybrids.
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Nice to see.
Is GM in line to get one as well?
Stellantis?
Tesla?
We gotta control the manufacturing of Batteries. They are the future and NOT just for vehicles. It is critical we have the supply chain.
This is more of a Ford bail out. They can’t get loans as they still owe on the bank loans. They also have low cash reserves. The stock is in the tank.
Ford is in bad shape and this loan is not going to fix much.
But the Government will have to help them. We are down two major mfgs now.
Ford reported nearly $28 billion of cash in hand in their 3rd quarter financial statement. I wouldn't call this low cash reserves.
This loan is about investing in the future of U.S. manufacturing capability.
when you are facing a future where you will need some kind of a good EV program $28 billion can run out fast.
The trucks are not bringing profits as they once did. The Aluminum bodies are eating into their easy money.
Much of Fords quality issues were due to them releasing a number of engineers to fund their EV programs. Ford is in major trouble and lack true leadership in heavy storms of the industry.
The Mach E and Lighting were out dated when they arrived. Also the Raptor and Mustang are not going to bail them out
Even the Bronco and Maverick are not contributing much.
More tax dollars that won’t be paid back . Battery cars have a long way to go before I’ll buy one. Technology isn’t there, I’ll give it another decade or more
If these battery plants are needed, Ford should pay for them, not the U.S. taxpayer.
It is a loan, not a handout.
The EV programs will be needed for market share. There will be countries and states that will force EV and if you are a mfg you will need something to offer or you will fall vack in market share.