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Ford exits BlueOval SK, assumes DOE-backed battery loan

Story Highlights
  • On May 20, 2026, Ford exited the BlueOval SK joint venture, ended a $6.6 billion capital commitment, and shifted ownership of the two Kentucky battery plants to a wholly owned subsidiary, consolidating EV battery manufacturing under direct corporate control.
  • Ford assumed a $3.805 billion DOE-backed loan for a Kentucky battery plant under a new agreement with 4.814% interest, long-dated amortization to 2040, and stringent covenants including a $4 billion minimum liquidity requirement, aligning project financing with its existing credit framework.
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Ford exits BlueOval SK, assumes DOE-backed battery loan

Meet Samuel – Your Personal Investing Prophet

The latest update is out from Ford Motor ( (F) ).

On May 20, 2026, Ford completed the previously announced disposition of its interest in BlueOval SK, the EV battery joint venture formed with SK On and SK Battery America to build plants in Tennessee and Kentucky, resulting in the redemption of Ford’s membership stake and termination of its obligation to contribute up to $6.6 billion in capital through 2026. As part of the closing, Ford’s subsidiary Ford Energy Battery LLC acquired BlueOval SK’s interests in the two Kentucky battery plants, Ford was released from its guarantee under the prior sponsor support agreement, and Ford assumed from the venture a $3.805 billion DOE-backed loan tied to one Kentucky plant under a new loan agreement with detailed covenants and liquidity requirements, aligning the financing and operational control of the project directly with Ford’s balance sheet and capital structure.

The Ford DOE Loan Agreement, bearing a 4.814% interest rate, requires interest-only payments until January 15, 2030, followed by quarterly principal and interest payments through final maturity on July 15, 2040. The facility includes covenants and default triggers broadly consistent with Ford’s existing credit arrangements, including limits on liens, mergers, and certain transactions by Ford Energy Battery, as well as a minimum available liquidity requirement of $4 billion, reinforcing lender protections while enabling long-term funding for Ford’s Kentucky battery manufacturing operations.

The most recent analyst rating on (F) stock is a Hold with a $14.00 price target. To see the full list of analyst forecasts on Ford Motor stock, see the F Stock Forecast page.

Spark’s Take on F Stock

According to Spark, TipRanks’ AI Analyst, F is a Neutral.

The score is held back primarily by weak recent profitability, very thin margins, and high leverage despite solid cash generation. Offsetting factors include a raised full-year outlook and supportive valuation (low P/E and strong dividend), alongside moderately positive technical momentum.

To see Spark’s full report on F stock, click here.

More about Ford Motor

Ford Motor Company is a global automotive manufacturer that designs, builds, and sells cars, trucks, and commercial vehicles, and increasingly focuses on electric vehicles and related technologies. Through ventures such as battery manufacturing plants in the United States, Ford is expanding its capabilities in EV supply chains to support its transition toward electrified transportation.

Average Trading Volume: 56,153,699

Technical Sentiment Signal: Strong Buy

Current Market Cap: $52.68B

See more insights into F stock on TipRanks’ Stock Analysis page.

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