A joint venture between Ford and South Korean battery marker SK On is set to receive a record $9.2B loan from the U.S. Department of Energy to finance battery plants for electric vehicles. The plants are set to be built in Tennessee and Kentucky, and the loan is the largest in the 20-year history of the governmental department. The Energy Department's Loan Programs Office has been given more power ever since the Biden administration passed the Inflation Reduction Act. - The Inflation Reduction Act is focused on critical infrastructure projects to help U.S. energy manufacturing.
- Ford and SK On finalized an $11.2B venture in 2022 and is called BlueOval SK.
- A large number of battery and electric-vehicle manufacturing factories have been planned or built in recent months, thanks in large part to EV tax credits and climate law.
- The push is to create more electric vehicles outside of China, which currently has the tightest grip on the supply chain.
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