The U.S. government is putting big new investment behind efforts to establish a North American supply chain for electric vehicles. The U.S. will provide a record $9.2 billion loan to a Ford joint venture with South Korea’s SK On to finance battery plants in Tennessee and Kentucky, the WSJ’s Amrith Ramkumar and Nora Eckert report, bolstering an emerging battery and EV manufacturing belt in the South that has been aided by tax credits and other incentives. The commitment adds to a clean-energy spending spree accelerated by last year’s Inflation Reduction Act, which gave the Energy Department more firepower to back critical infrastructure projects. The joint venture called BlueOval SK is a centerpiece of Ford’s ambitions to scale EV production to an annual rate of two million vehicles globally by the end of 2026. The plan includes two battery plants in Kentucky and one battery plant in Tennessee.

• Ford is preparing to initiate another round of layoffs of salaried workers in the U.S. in the coming weeks. (WSJ)

The choke-point position China has built in global supply chains may be Beijing’s most potent source of leverage in its geopolitical skirmishing with Washington. China’s role as a key supplier of countless components and materials is looming over U.S. trade policy, the WSJ’s Greg Ip writes in a Capital Account column, with the Biden administration arguing that free-trade agreements have increased rather than decreased China’s influence over the world’s production networks. That’s because, says U.S. Trade Representative Katherine Tai, an emphasis on efficiency and low cost in trade deals has led to significant content coming from third countries. Tai didn’t name China, but no other country is as central to supply chains. China accounts for nearly a fifth of the world’s manufactured exports, up from less than 5% in 2000. It accounts for 66% of lithium-ion cells, used in electric-vehicle batteries, and more than 80% of solar-panel manufacturing.

China-founded ultrafast-fashion retailer Shein is seeking to reshape its public image even as it resets its supply chain. The top fast-fashion retailer in the U.S. by market share is undertaking a balancing act as it navigates geopolitical tensions between China and the U.S. while following an international approach to corporate governance. The WSJ’s Shen Lu reports that critics have battered Shein over alleged copyright infringement, textile waste and questionable labor practices even as the popularity of its rock-bottom-priced clothes has soared. Despite talking up transparency and traceability in a recent report, Shein remains mum on many of its business practices, including details on its suppliers. The company says it doesn’t work with suppliers who source cotton from China’s Xinjiang region, where the U.S. accuses China of using forced labor. But fashion analysts say Shein hasn’t provided evidence to back up such statements, including a list of its suppliers.

• Major garment producers in Southeast Asia have seen their trade to the United States drop this year by as much as 30%. (Nikkei Asia)

A new federal report says a Norfolk Southern train that derailed in Ohio last year had two mechanical disruptions on its journey before the incident. (WSJ)

The Bank of England raised its key interest rate by half a percentage point to the highest level since 2008. (WSJ)

The Conference Board’s leading economic index fell in May for the 14th month in a row. (MarketWatch)

India will buy U.S. drones and jointly produce jet-fighter engines in a multibillion-dollar deal designed to wean New Delhi off arms purchases from Russia. (WSJ)

Boeing supplier Spirit Aerosystems suspended factory operations after workers voted to strike after rejecting a contract offer. (MarketWatch)

Norway opened the door for deep-sea mining of copper and other materials in its waters. (WSJ)

Shares in U.K.-based Ocado Group rose on speculation the online grocer could be sold. (Times of London)

Lessons learned during the Covid pandemic are helping East European logistics companies operate through the war in Ukraine. (The Loadstar)

A $600 million project aims to put a deep-water port in Nome, Alaska, to serve cruise and cargo ships. (Associated Press)

Autonomous trucking startup Kodiak Robotics struck a deal to have trucking marketplace Loadsmith put 800 Kodiak-equipped trucks on its platform. (TechCrunch)

Convoy co-founder Grant Goodale is stepping down from his executive position at the digital trucking marketplace. (GeekWire)

Transport Canada approved expanded operating​ authority for Drone Delivery Canada. (Air Cargo Next)

Regional off-price retailer Forman Mills is looking at closing stores as it tries to avoid a potential bankruptcy filing. (Retail Dive)

Railroad Canadian Pacific Kansas City and Americold plan to build a series of temperature-controlled warehouses between Mexico and Chicago. (Journal of Commerce)

Walmart says it is tightening sustainability standards in its tuna supply chain. (The Hill)

Half of owner-operator truck drivers in a survey say they travel with pets for emotional support. (Truckers News)

The Instant Pot maker’s bankruptcy highlights how supply-chain disruptions during the pandemic still are straining the finances of companies. 

CFOs started using company jets for personal use during the pandemic. They haven’t stopped. 

A big source of inflation is parked in the garage, and we aren’t talking car prices. 

Paul Page is editor of WSJ Logistics Report. Reach him at paul.page@wsj.com.

Follow the WSJ Logistics Report team: @PaulPage, @bylizyoung and @pdberger. Follow the WSJ Logistics Report on Twitter at @WSJLogistics.