BlueOval SK, the battery production joint venture between SK On Co. and Ford Motor Co., has provisionally secured up to $9.2 billion in policy support funding from the U.S. Department of Energy.

With this funding, BlueOval SK will have a stronger foundation for its production activities in the U S.

SK On announced on Thursday that BlueOval SK has received conditional approval to borrow $9.2 billion in policy funding under the Department of Energy's Advanced Technology Vehicles Manufacturing (ATVM) Loan program.

Earlier, Ultimate Cells, a joint venture between LG Energy Solutions and General Motors, secured a $2.5 billion ATVM loan.

BlueOval SK's borrowing rate under the ATVM program will be based on the US Treasury rate.

At closing, the borrowings will be available at rates as low as the 10-year US Treasury rate.

"The borrowing was made possible by the US Department of Energy's positive assessment of BlueOval SK's production capacity based on SK On's technology," said an SK energy official.