The US government is going all-in in its efforts to catch up with China in the EV space, loaning Ford $9.2 billion to build three EV battery plants.
China is the world leader in EV battery production, a fact that has become a growing concern for western leaders amid a push to transition to hybrid and fully-electric vehicles.
According to Bloomberg, the US government is loaning Ford $9.2 billion to build three EV battery factories in an effort to help the American automotive industry catch up with China. The factories are already under construction in Kentucky and Tennessee.
Bloomberg reports that the loan will pave the way for American consumers to receive major breaks and incentives for purchasing Ford EVs:
Ford’s cars and SUVs made with domestic batteries will also be eligible for billions of dollars in incentives embedded in the Inflation Reduction Act’s $370 billion in clean-energy funding, part of the historic climate measure narrowly passed into law about a year ago. The US government will subsidize manufacturing of batteries, and buyers could qualify for additional tax rebates of up to $7,500 per vehicle.
Ford has made no secret of its goal to surpass Tesla as the top EV maker. The company has been making major headway toward that goal, but this latest deal may well propel it to new heights.