UAW blasts Biden administration over Ford, SK battery loan

The head of the UAW on Friday bashed the Biden administration’s decision this week to give conditional approval for a multibillion-dollar loan package to a joint venture between Ford Motor and a South Korean battery maker without including wage, work conditions and retirement demands upfront.

“We have been absolutely clear that the switch to electric engine jobs, battery production and other EV (electric vehicle) manufacturing cannot become a race to the bottom,” UAW President Shawn Fain said. “Not only is the federal government not using its power to turn the tide — they’re actively funding the race to the bottom with billions in public money.”

“Why is Joe Biden’s administration facilitating this corporate greed with taxpayer money?” Fain continued in the statement, which also called the loan a “handout.”

On Thursday, the U.S. Department of Energy announced that it was awarding a conditional commitment to BlueOval SK, a joint venture between Ford and battery maker SK On, of up to $9.2 billion to build a plant in Stanton, Tennessee, and two near Glendale, Kentucky, to produce batteries for Ford and Lincoln EVs.

Energy’s Loan Programs Office said the project is expected to create thousands of construction jobs in Tennessee and Kentucky and have about 7,500 employees once the plants are operating and meets the Biden administration’s goal of investing more federal loans in and around disadvantaged communities.

More:Ford-SK On venture awarded $9.2 billion loan from feds for battery plants in TN, KY

The award, contingent on the joint venture meeting several benchmarks, came through the Advanced Technology Vehicles Manufacturing (ATVM) program which provides loans to projects intended to put more fuel-efficient vehicles on the road. Last year, the ATVM program committed to loan a joint venture between General Motors and LG Energy Solutions to build battery cell plants up to $2.5 billion.