Ford Motor Company (NYSE: F) assumed a $3.8 billion loan from the U.S. Department of Energy related to a battery manufacturing plant in Kentucky, according to a company filing. The transaction occurred on May 20, 2026, as part of Ford's exit from the BlueOval SK joint venture.

Under the arrangement, Ford's wholly owned subsidiary Ford Energy Battery LLC acquired the Kentucky battery plant assets from BlueOval SK, which was a joint venture between Ford and South Korean companies SK On Co. and SK Battery America.

The DOE loan carries an interest rate of 4.814% per annum. Ford will make quarterly interest-only payments through January 15, 2030, followed by quarterly principal and interest payments from April 15, 2030, through the final maturity date of July 15, 2040.

As part of the joint venture dissolution, Ford's requirement to contribute up to $6.6 billion in capital to BlueOval SK over a five-year period ending in 2026 was terminated. Ford was also released from its guarantee obligations under the original joint venture loan structure.

The loan agreement includes financial covenants requiring Ford to maintain available liquidity of at least $4 billion. Default triggers include cross-payment defaults on debt exceeding $1 billion, bankruptcy of Ford or significant guarantors, and U.S. judgments against Ford exceeding $100 million individually or $200 million in aggregate.

BlueOval SK originally received $7.84 billion in total advances from the DOE to finance construction of battery manufacturing plants in Tennessee and Kentucky. The joint venture was established to support Ford's electric vehicle production plans.