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  • #37: DOE’s $9.63B Loan for Ford-SK Battery Venture

#37: DOE’s $9.63B Loan for Ford-SK Battery Venture

WeaveGrid raises $28M, historic battery production loan, and record holiday charging demand.

Author

Steve Taylor
December 21, 2024

Together with

The 3 big stories:

  • Thanksgiving holiday charging sessions surge 50% year-over-year

  • DOE approves $9.3B loan for Ford-SK battery factories

  • WeaveGrid secures strategic investment from Toyota's Woven Capital

Plus, featured jobs and news.

Enjoy,

–Steve

Current EVents

EV Industry Updates

EV charging hit record highs during Thanksgiving, with fast-charging sessions increasing 50% above 2023 levels, according to Paren data. Black Friday saw the most demand with a 54% jump in sessions year-over-year.

The week of Thanksgiving dominated the year's charging activity, claiming eight of the top ten busiest charging days in 2024. Charging sessions spiked over Thanksgiving weekend, with Saturday surpassing the yearly average by 24% and Sunday seeing a 21.3% increase.

Charging reliability saw a significant boost, with the Paren Reliability Index rising to 85.5%—a 3.4 percentage point improvement over the previous year. These increases highlight the success of ongoing initiatives and technology aimed at improving infrastructure dependability.

Steve's Take

Paren’s Thanksgiving charging data highlights two important trends shaping the charging landscape. First, the industry appears to be effectively scaling to meet rising demand, as shown by the parallel rise in charging sessions and the expansion of available infrastructure. This suggests that charging networks are proactively addressing the needs of an expanding EV market.

Second, the relatively low utilization rates present both opportunities and challenges. Underutilized capacity suggests the industry is prepared to absorb future demand, but it also shows the need for planning efforts to balance infrastructure expansion with operational efficiency. As we look to 2025, charging networks must prioritize strategic site placement and utilization to ensure financial viability while maintaining widespread coverage.

The improved reliability metrics show the growing maturing of charging infrastructure. Improvements in hardware, enhanced connectivity, and rising competition are driving a better user experience and building public confidence in the growing U.S. charging network.

–Steve

Power and Policy

The U.S. Department of Energy has finalized a historic $9.63B loan to BlueOval SK, the joint venture between Ford Motor Company and South Korean battery maker SK On. This represents the largest award granted under the Advanced Technology Vehicles Manufacturing loan program, exceeding the initial $9.2B conditional commitment announced in June 2023.

The loan will fund the construction of three battery manufacturing plants in Tennessee and Kentucky, adding more than 120 gigawatt hours of annual U.S. battery production capacity.

Jigar Shah, who leads the DOE Loan Programs office, said “This program is essential to getting people to choose the United States of America. When you look at the competition that we have from China, it is very clear to me that they have used low-cost debt for a very long time to promote a lot of manufacturing capacity that has hollowed out many communities in Kentucky, Tennessee, and other states around the country."

This announcement comes during a wave of DOE loan activity focused on the EV sector. The Department recently announced plans for a $7.54B loan to StarPlus Energy, the Stellantis-Samsung SDI venture, and proposed a $6.6B loan to Rivian for its Georgia facility. These actions reflect the Biden Administration's push to secure domestic EV manufacturing capacity ahead of the anticipated transition to the Trump administration in January.

Rob's Take

The completion of this record-setting loan is a pivotal moment for U.S. battery manufacturing. By securing funding for three large-scale production facilities, the DOE is building a foundation for a strong and resilient domestic EV supply chain, designed to endure beyond potential future policy changes.

The timing of this announcement, alongside other major loan approvals, reflects a strategic push to solidify long-term investments in EV manufacturing ahead of the Presidential transition. While the incoming Trump Administration has voiced skepticism about EV incentives, these loans establish binding financial commitments that will be difficult to reverse.

The impact of this loan for the EV charging industry is profound. A significant increase in domestic battery production capacity is expected to lower costs, improve supply chain performance, and accelerate EV adoption. This growth will likely fuel demand for expanded charging infrastructure, particularly in regions surrounding these emerging battery manufacturing hubs.

–Rob 

Emerging EV Tech

WeaveGrid has raised $28M, led by Toyota’s growth fund, Woven Capital. This investment will allow WeaveGrid to further develop its software platform allowing electric utilities to manage the growing demand of EV charging.

WeaveGrid’s platform supports utilities that operate more than 40% of EVs in the United States. Their technology allows utilities to better absorb and manage the growth of vehicle electrification by optimizing energy consumption and grid performance.

With this new funding, WeaveGrid will continue to expand its platform and develop more partnerships with automakers and utility providers.

Steve's Take

This investment highlights the important role of software platforms in managing the relationship between EVs and power grids. As EV adoption accelerates, maintaining grid stability and reliability will depend on the intelligent balancing of charging loads.

Toyota’s growth fund investment is a notable shift in how major automakers approach grid integration. The success of EV adoption depends not only on vehicle innovation but also on the supporting infrastructure.

Platforms like WeaveGrid are critical in helping utilities manage rising power demands. By bridging the gap between EV technology and grid infrastructure, WeaveGrid and others will play an increasingly vital role in ensuring the electrical grid remains resilient and stable.

–Steve

Featured Jobs

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⚡️Steve and Rob

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