Ford venture nabs $9.2 billion from Department of Energy
Companies use federal dollars for new plants in Tennessee, Kentucky
Ford CEO Jim Farley weighs in on the electric vs. gas vehicle debate
Ford CEO Jim Farley joined 'Barron's Roundtable' to discuss the debate on electric vs. gas cars, the auto company's growth and approach to the auto industry, and reacts to Warren Buffett's comments on investing in the industry.
Ford’s joint venture to build vehicle batteries with South Korean company SK On just received a $9.2 billion boost from the U.S. Energy Department.
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The low-cost loan comes from the government's Advanced Technology Vehicles Manufacturing (ATVM) program and will assist the collaboration in building three new battery plants in Tennessee and Kentucky capable of collectively producing more than 120 gigawatt hours annually, the Department of Energy said.
Kentucky Truck Plant’s advanced manufacturing technologies and tools are helping Ford upskill its workforce and deliver better-quality Lincoln Navigators and Ford Expeditions to customers more quickly. (Ford / Fox News)
The ATVM program has now given out six loans for battery supply chain projects. In September 2009, Ford was awarded a $5.9 billion low-cost government loan from the same program and completed its payments last year, after deferring some in 2020.
The joint project is expected to create 5,000 construction jobs in Tennessee and Kentucky, and 7,500 new jobs once the plants become operational.
Ford
.Meanwhile, the $430 billion Inflation Reduction Act approved in August also creates a new $45-per-kilowatt battery production tax credit.
In October, Ford CEO Jim Farley said that from 2023 to 2026, "we estimate a combined available tax credit for Ford and our battery partners could total more than $7 billion."
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Last year, the department awarded a joint venture of General Motors and LG Energy Solution $2.5 billion to help finance construction of new lithium-ion battery cell manufacturing facilities.
The loan to Ultium Cells LLC is for facilities in Ohio, Tennessee and Michigan.
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Reuters contributed to this report.