This photo, provided by SK On Co. on June 23, 2023, shows the construction site for its joint electric vehicle battery manufacturing complex with Ford Motor Co. in Glendale in the U.S. state of Kentucky.
SEOUL, June 22 (Korea Bizwire) — SK On Co. said Thursday its joint venture with Ford Motor Co. has obtained preliminary approval for a loan of up to US$9.2 billion from the U.S. government, funding that will help them forge ahead with their megaproject to build three battery plants in America.
BlueOval SK, the SK On-Ford U.S. venture, has received conditional approval from the U.S. Energy Department for the low-cost loan under the Advanced Technology Vehicles Manufacturing (ATVM) program, the Seoul-based battery maker said.
BlueOval SK plans to sign the formal loan agreement as early as before the year-end, SK On said.
SK On and Ford are building two electric vehicle (EV) battery plants in Kentucky and a third one in Tennessee as part of their $11.4 billion venture, formed in 2021.
SK On is a unit under South Korea’s second-largest conglomerate, SK Group.
The three plants, once operational, will have an annual production capacity of 129 gigawatt hours, equivalent to powering about 1.2 million EVs. The factories will go into commercial operation in phases starting in 2025.
The ATVM is a direct loan program designed to support the manufacturing of fuel-efficient vehicles and domestic manufacturing by automakers.
(Yonhap)
