Summary
Ford Motor Company (F) has filed an 8-K report detailing significant changes to its involvement in the BlueOval SK (BOSK) joint venture for EV battery manufacturing. On May 20, 2026, Ford's membership interest in BOSK was redeemed, and its commitment to contribute up to $6.6 billion to BOSK was terminated. This restructuring results in a wholly owned Ford subsidiary, Ford Energy Battery LLC (FEB), acquiring BOSK's interests in two Kentucky battery plants. Crucially, Ford has assumed a direct financial obligation from BOSK, entering into a new Loan Arrangement and Reimbursement Agreement with the U.S. Department of Energy (DOE) for approximately $3.8 billion. This loan is related to the Kentucky plant and carries an interest rate of 4.814%, with principal and interest payments commencing in April 2030 and maturing in July 2040. This move effectively transfers the financial responsibility for a portion of the battery plant financing directly to Ford, while also releasing Ford from its prior guarantee obligations under the original BOSK DOE Loan Agreement.
Key Highlights
- 1Ford's direct financial obligation for a portion of EV battery plant financing has been established through a new DOE loan agreement for $3.805 billion.
- 2Ford's membership interest in the BlueOval SK (BOSK) joint venture has been redeemed.
- 3Ford's commitment to contribute up to $6.6 billion to BOSK over a five-year period has been terminated.
- 4A Ford subsidiary, Ford Energy Battery LLC (FEB), acquired BOSK's interests in two Kentucky battery plants.
- 5Ford is released from its prior obligations under the Sponsor Support, Share Retention and Subordination Agreement (SSA), including its 50% guarantee of BOSK's DOE loan.
- 6The new DOE loan has an interest rate of 4.814% with quarterly interest-only payments through January 2030, followed by principal and interest payments.
- 7The loan agreement includes covenants similar to Ford's existing credit agreement, including a liquidity requirement of at least $4 billion.