| Work Detail |
The Department of Energy announced a $1.25 billion loan for EVgo to build fast chargers, along with $9.6 billion for Ford and battery maker SK to build three battery factories.
The U.S. Department of Energys (DOE) Loan Programs Office (LPO) has finalized two loans totaling more than $10 billion to support the burgeoning electric vehicle market in the United States.
The first loan, a $1.25 billion package, has been granted to EVgo, a leading developer and operator of high-speed charging stations for electric vehicles. This loan includes $1.05 billion in principal and $193 million in capitalized interest.
The LPO says that “the loan guarantee will support EVgo’s deployment of approximately 7,500 chargers at approximately 1,100 charging stations across the United States.” These stations will be equipped with high-power, dual-port, 350 kW direct current (DC) chargers that can charge two vehicles simultaneously.
EVgo will incorporate its “dynamic power sharing” technology to efficiently distribute power between connected vehicles, reducing charging times. Additionally, Autocharge+ technology will allow pre-registered customers to start charging by simply plugging in their vehicles.
This project is expected to generate more than 180 construction jobs and more than 550 maintenance and support positions.
The second loan, totaling $9.63 billion, was awarded to a joint venture between Ford and South Korea’s SK, a world leader in battery production. The financing will support the construction of three facilities, each measuring four million square feet, dedicated to the production of battery cells for electric vehicles. Two of the facilities will be located in Kentucky and the third in Tennessee. Combined, they are expected to produce about 120 gigawatt-hours of batteries per year.
To date, Ford and SKs joint venture, BlueOval SK, has invested $11 billion in the facilities. Production at one of the Kentucky plants is scheduled to begin in early 2025, followed by the Tennessee plant later that year.
On December 16, 2024, coinciding with the confirmation of the LPO loan, BlueOval SK’s website for the Kentucky facility stated: “We are ready to launch!” The announcement was accompanied by news of a salary increase effective January 1, 2025, and the posting of 23 job openings.
In recent times, Ford and SK have faced some delays in the construction of their factories due to fluctuating electric vehicle sales in the US. Initially, both Kentucky facilities were to begin operating simultaneously in early 2025, or even late 2024. However, the opening of the second plant has been postponed to the end of the year, pushing component production back to 2026.
Ford also appears to have cancelled plans for a cathode manufacturing plant in Quebec, also a joint venture with SK. This decision was taken after multiple delays, attributed to falling demand for electric vehicles. |
