Biden Admin Grants Ford $9.2B Loan for EV Battery Plants

Ford Receives $9.2 Billion Loan to Build Electric Vehicle Battery Plants

Ford is set to receive the largest government check for an automaker since the 2009 bailouts. The $9.2 billion loan, provided by the Biden administration, aims to support the construction of three electric vehicle battery plants in the U.S.

The loan is part of the administration’s efforts to boost U.S. automakers in their race against China for green technologies. It also aligns with President Biden’s ambitious goal of electrifying 67% of all commercial passenger vehicles sold in the U.S. by 2032, as reported by Bloomberg.

Ford has partnered with South Korean battery company SK On Co. in a joint venture called BlueOval to build the battery plants in Tennessee and Kentucky.

“Major technology transitions have always been accelerated by collaboration between the public and private sectors,” said Ford Treasurer Dave Webb, according to Reuters.

The loan comes from the Advanced Technology Vehicles Manufacturing (ATVM) loan program, a department within the EPA. It will be the largest loan in the program’s history. Ford and SK have already begun constructing the battery manufacturing facilities, which are expected to produce over 120 gigawatt hours annually, according to the Energy Department.

While the loan has received criticism for government interference in the free market, Ford’s push for electric vehicles remains strong. The company aims to produce up to two million EVs by 2026, with a projected cost of $3 billion in 2023. Ford is chasing Tesla in the EV sales race and hopes to narrow the gap.

Alongside the push for EV sales, the Biden administration plans to crack down on tailpipe emissions for cars made between 2027-2032. The administration has also announced investments to incentivize EV sales, with the goal of making up half of all new vehicle sales by 2030.

CLICK HERE TO GET THE DAILYWIRE+ APP

*As an Amazon Associate I earn from qualifying purchases