Ford and SK Innovation Form JV for EV Batteries in USA

Auto major, Ford Motor Company, and South Korean group SK Group’s SK Innovations have announced signing a memorandum of unity (MoU) to form a joint venture for producing electric vehicle (EV)battery cells and array modules, in the USA. 

The EV battery joint venture would be entitled BlueOvalSK (Ford’s Blue Oval emblem and SK in SK Innovation’s name), which is expected to produce approximately 60 GWh annually in traction EV battery cells and array modules. This annual capacity will be enough to power about 600,000 electric pickup trucks (each requires about 100kwh of battery). The Production line will be starting by 2025 with potential to expand further.

As per the company’s claims, about 6 trillion KRW (Korean Republic won) will be invested in this JV. Accordingly, along with the 3 trillion KRW investment in Plant 1 and Plant in Georgia, SK Innovation has announced a total of 9 trillion KRW in building battery facilities in the U.S. The company expects to ramp up further basis the market expansion in the future.

Speaking of the partnership, Ford president and CEO, Jim Farley stated, “This MOU is just the start; it’s a key part of our plan to vertically integrate key capabilities that will differentiate Ford far into the future. We will not cede our future to anyone else.”

Ford’s global battery electric vehicles (BEV) plan endeavors for at least 240 GWh of battery cell capacity by 2030, which will require roughly 10 plants worth of capacity. Nearly 140 GWh will be needed in North America, with the balance dedicated to other key regions, including Europe and China.

“Global automakers have praised SK Innovations’ EV batteries for their safety, high capacity, and long life,” said Jee Dong-seob, Head of SK Innovation’s Battery Business. 

Jee further said, “SK Innovation will be supplying batteries for the fully electric version of Ford’s legendary and best-selling F-150 pickup truck. We are thrilled to be supporting the electrification of a vehicle that represents the very best of American auto making.”

Earlier this month, Ford Motor Company along with BMW Group, extended their partnership into Solid Power to secure and utilize the low-cost, high-energy all-solid-state batteries for their EVs in the future. The investment provides Solid Power to produce full-scale automotive all-solid-state batteries, increase material output and expand in-house production capabilities for future BMW and Ford EV integration.