Ford announced on Thursday that it will receive $9.2billion as part of the US Department of Energy's conditional loan to help build three massive electric vehicle battery plants. This massive loan is the largest government offer to an automaker after the bailouts that followed the
Great Recession 2009
The loan comes from DOE's Advanced Technology Vehicles Manufacturing Program (AVTM), which
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For a joint venture between General Motors and LG Energy Solution, to help finance the construction of a lithium-ion batteries manufacturing facility.
Redwood Materials was also a recent recipient.
The former Tesla chief technologist founded the venture for recycling and manufacturing electric vehicle batteries.
The loans are part a broader initiative by the Biden Administration to boost EV production as it races to keep up with China which controls about three quarters of global battery production. The White House is also using this loan to promote clean energy in the face of a growing climate crisis.
The Biden administration is promoting EV manufacturing through a wider effort.
The tailpipe emissions of passenger and commercial vehicles are responsible for about a third all greenhouse gasses and are a major contributor to climate changes. Electrifying vehicles (EVs) is one way elected officials can keep global warming below 1.5 degrees Celsius as specified in the Paris Agreement.
Ford and South Korean battery maker SK Innovation have announced that they will spend $11.4 billion to build three batteries plants in Kentucky, Tennessee, and Kentucky. The two companies have formed a joint-venture called BlueOvalSK to increase their capacity.
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Each year, this would be enough electricity to power 2,000,000 EVs per annum by 2026.
Congress created the ATVM program under George W. Bush's administration, and allocated $25 billion to 'provide low-cost debt financing for fuel-efficient vehicles and eligible component manufacture in the United States. Nissan, as well as Tesla, has received funding from the ATVM program.
Ford has also done so. At the height of recession in 2009, Ford received $5.9billion to renovate its factories and improve the energy efficiency of their vehicles. The plan also included retrofitting the factories to produce more fuel-efficient compact vehicles rather than gas-guzzling big cars.
Tesla and Nissan both paid off their loans but
To get the debt off of its balance sheet. Ford filed documents showing that the company was owed $591,000,000 in 2020, $591,000,000 in 2021 and $289,000,000 in 2022. The loan was fully repaid as of this year. The compact cars that were built with the loan are no longer available.