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Kentucky, Tennessee to benefit from largest single federal investment in automotive industry

The U.S. government extended a $9.2 billion loan to BlueOval SK to support construction of two manufacturing facilities in Kentucky and one in Tennessee.

GLENDALE, Ky. — Two electric vehicle battery manufacturing plants in Kentucky and one in Tennessee are set to receive the largest single federal investment ever made in the automotive industry.

The U.S. Department of Energy (DOE) announced on Thursday a conditional commitment for a loan of up to $9.2 billion to BlueOval SK.

The federal funds will go toward the construction of three manufacturing plants that will produce batteries for Ford Motor Company's future Ford and Lincoln electric vehicles.

The project is expected to create approximately 5,000 construction jobs in Tennessee and Kentucky, and 7,500 operations jobs once the plants are up and running, according to a DOE news release.

BlueOval SK is a joint venture between Ford and SK On, a Korean EV battery manufacturer. BlueOval SK was created to supply Ford with batteries.

Officials say several steps remain and certain conditions must be satisfied before DOE issues a final loan.

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