Covington Represents SK Innovation, SK On and SK Battery America With Respect to a $9.63 Billion Loan from the U.S. Department of Energy to BlueOval SK

NEW YORK—Covington advised SK Innovation, SK On, and SK Battery America in the negotiation and closing of a direct loan of up to $9.63 billion from the U.S. Department of Energy (DOE) to BlueOval SK (a joint venture between Ford Motor Company and SK Battery America), for the construction of up to three manufacturing plants to produce batteries for Ford’s electric vehicles. Collectively, the plants, one located in Tennessee and two in Kentucky, would annually enable up to 120 gigawatt hours of battery manufacturing capacity.

This is the largest loan to date from DOE’s Advanced Technologies Vehicles Manufacturing (ATVM) Loan Program.

SK Innovation is a global energy and chemical company that, among other things, is involved in the research and development of high-energy density batteries as well as oil and gas production and exploration. SK On is a company that is focused on developing applications for battery technologies, including supplying batteries for use in electric vehicles. SK Battery America is a subsidiary of SK On that focuses on the production of batteries for electric vehicles in the United States.