The Biden administration has awarded Ford a $9.2 billion loan, the largest ever given to a US automaker, to help build three battery factories. This move aims to help the US catch up with China’s electric vehicle dominance. It is part of the administration’s $400 billion plan to go all-in on green technologies.
The three battery factories will be located in Tennessee and Kentucky. They will be jointly owned by Ford and South Korea’s SK On Co. These factories are expected to create 11,000 jobs. Additionally, they will have the capacity to produce enough batteries for 1 million EVs per year.
This loan is a significant boost for Ford’s electric vehicle ambitions. Ford plans to produce as many as 2 million EVs by 2026, a substantial increase from the 132,000 produced last year. With this loan, Ford aims to accelerate its EV production. Ford also aims to become more competitive with Chinese EV makers. Chinese EV makers currently dominate the global market.
The loan also highlights the Biden administration’s commitment to green energy. It has prioritized reducing US reliance on fossil fuels and promoting the development of clean energy technologies. The loan to Ford marks a major step in that direction.
The loan has been met with mixed reactions. Some have praised the administration for its support of green energy, while others have criticized the loan as being too generous. However, there is no doubt that the loan will help Ford to accelerate its EV production and make it more competitive in the global market.
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