8-KMaterial AgreementsFinancial EventsOther Events+1

FORD MOTOR CO 8-K Report, Material Agreement (May 21, 2026)

Filed May 21, 2026For Securities:FF-PCF-PDF-PB

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.

Frequently Asked Questions

The primary financial impact is that Ford has assumed a direct loan obligation of approximately $3.8 billion from the U.S. Department of Energy for a Kentucky battery plant. This replaces its previous role as a guarantor of a larger joint venture loan and its capital contribution commitments to BlueOval SK.

Ford's commitment to contribute up to $6.6 billion to BOSK has been terminated, and its 50% guarantee on the larger BOSK DOE Loan has also been lifted. Ford is now solely responsible for the $3.8 billion DOE loan related to the acquired Kentucky plant.

The loan has an interest rate of 4.814% per annum. Ford is required to make quarterly interest-only payments until January 15, 2030, after which quarterly principal and interest payments will be due until the final maturity date of July 15, 2040.

A wholly owned subsidiary of Ford, Ford Energy Battery LLC (FEB), acquired from BOSK all of BOSK's interests in the two battery plants located in Kentucky. These assets are subject to existing liens in favor of the DOE.