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[Alpha Biz= Reporter Kim Jisun] The U.S. Department of Energy (DOE) has granted final approval for a $13.8 trillion KRW ($9.63 billion USD) loan to BlueOval SK, the joint battery manufacturing venture between South Korea's SK On and U.S. automaker Ford Motor Company.
The DOE announced on December 13 (local time) that it had finalized the loan agreement under its Advanced Technology Vehicles Manufacturing (ATVM) program, which offers low-interest loans at rates comparable to U.S. Treasury bond yields.
The ATVM program, established under the U.S. Energy Independence and Security Act of 2007, aims to support manufacturing of vehicles and components through low-interest financing.
BlueOval SK initially received conditional approval for the ATVM loan in June 2022. After rigorous evaluations of technical expertise, market impact, financial stability, and legal compliance, the final agreement was reached. The approved loan amount exceeds the previously announced $9.2 billion, marking it as the largest loan issued under the Biden administration's electric vehicle support initiatives.
With this financial backing, BlueOval SK's plans to build three battery production plants in the U.S. are set to proceed as scheduled. The facilities, located in Kentucky (two plants) and Tennessee, represent a total investment of over $11 billion (approximately 15.8 trillion KRW). The plants are expected to begin phased commercial operations starting next year.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
