What happened: Ford Motor and its battery manufacturing partner, SK On, were granted a record $9.2B loan by the U.S. Department of Energy to help build three electric vehicle battery plants in Kentucky and Tennessee. The factories, operated by the joint venture BlueOval SK, will produce batteries for Ford and Lincoln EVs, creating an estimated 7,500 operating jobs. Why it matters: The loan, the largest government backing for a U.S. automaker since the 2009 financial crisis, represents a significant commitment by the Biden administration toward creating an American EV manufacturing network. The credit comes from the Department of Energy's Loan Programs Office, which offers loans and guarantees for clean-energy projects and has doled out nearly $33B over the past 14 years. Ford's loan is one of the biggest to come out of that department. What the numbers say: President Biden's goal of having 50% of new vehicle sales be electric by 2030 has faced skepticism. However, current trends suggest that the target may be within reach. While estimates from EVAdoption and the International Energy Agency project lower EV market shares, actual sales have consistently surpassed predictions. In Q1 2023, EVs accounted for 7.1% of U.S. vehicle sales, while the number of EVs sold was over five times higher than just three years ago.
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