Ford Motor Company has finalized the restructuring of its BlueOval SK (BOSK) joint venture with SK On, resulting in Ford taking full ownership of two electric vehicle battery plants in Kentucky. In conjunction with the transaction, Ford has assumed a $3.805 billion loan from the U.S. Department of Energy (DOE) previously held by the joint venture and has been released from its prior loan guarantees.
Key Details
- Transaction Summary: On May 20, 2026, a Ford subsidiary acquired BOSK's interests in the two Kentucky battery plants. Ford's membership in the BOSK joint venture was redeemed, and its prior capital commitment of up to $6.6 billion was terminated.
- Loan Assumption: Ford assumed a $3.805 billion promissory note payable to the DOE. The loan carries an interest rate of 4.814% per annum with a final maturity date of July 15, 2040. Payments will be interest-only through January 2030, followed by principal and interest payments.
- Obligation Changes: As part of the agreement, Ford was released from its previous obligation to guarantee 50% of the original, larger $9.6 billion DOE loan to the BOSK joint venture. The new loan agreement includes a covenant requiring Ford to maintain a minimum of $4.0 billion in available liquidity.