BlueOval SK, a joint venture between South Korean battery manufacturer SK On and global automaker Ford Motor Company, is used to manufacture electric vehicle batteries and plans to submit to the U.S. government under the Advanced Technology Vehicle Manufacturing (ATVM) program. Apply for a loan to expedite the construction of a battery factory in the United States.
South Korea’s “Daily Economic News” quoted sources as saying that BlueOval SK will apply for ATVM funds from the US Department of Energy for large-scale investment projects. Market observers estimate that BlueOval SK may raise as much as 3 trillion to 5 trillion won (about 27.2 billion yuan) in funds. The industry expects that BlueOval SK’s loan application results will be announced by the second quarter of this year at the latest.
In September 2021, SK On and Ford announced that they will each invest 5.1 trillion won to jointly establish BlueOval SK, and plan to build one and two battery factories in Tennessee and Kentucky, respectively, by 2025. BlueOval SK’s Tennessee plant is also planned to include Ford’s electric vehicle production line.
SK On received 2 trillion won from its parent company SK innovation last month and attracted 800 billion won from Korea Investment Private Equity.
SK On originally planned to raise 4 trillion won through pre-IPO financing early last year. However, investor sentiment has been dampened by increased market uncertainty due to the protracted Russia-Ukraine conflict, inflation and high borrowing costs. At last month’s groundbreaking ceremony for the BlueOval SK battery park in Glendale, Kentucky, SK said it aimed to become the world’s third-largest battery supplier by 2025.
