Ford and SK Finalize U.S. Joint Venture for EV Batteries

The Ford Motor Co and South Korean battery maker SK On Co along with its subsidiary recently finalized establishing a joint venture for constructing and operating battery production facilities within the United States.

Last year, Ford and SK Innovation announced that they signed an MoU to create a joint venture – to be called BlueOvalSK – to produce approximately 60 GWh annually in traction battery cells and array modules, starting mid-decade, with potential to expand.

In terms of innovative products, solid-state batteries are especially showing great promise. They don’t use the liquid electrolyte found in conventional lithium-ion batteries, can be lighter, with greater energy density and provide more range and lower cost. They also can be made on today’s lithium-ion battery lines, allowing Ford to reuse about 70 percent of its capital investment in lithium-ion manufacturing lines.

Most recently, The JV, BlueOval SK LLC, is scheduled to create a battery plant for electric vehicles (EV) in Tennessee and two other facilities in Kentucky, Ford stated in a regulatory filing.

Both the companies had signed a memorandum of understanding for the JV in May last year. BlueOval SK is expected to produce about 60 gigawatt hours of power annually that could be raised further.

Numerous battery makers around the world have stated their intentions and plans to invest in the United States as part of an industry trend to meet the expected growth for EVs and to reduce reliance on production in China and cut the related supply chain risks.

South Korean battery makers have announced investment plans of $5.5 billion this year in U.S. plants. Ford will contribute up to $6.6 billion in capital to BlueOval SK over a five-year period ending in 2026, the automaker said.

By 2030, Ford expects annual energy demand for its vehicles will be up to 140 GWh annually in North America and up to 240 GWh globally; the company has invested in and is working with a number of battery suppliers to secure capacity and scale delivery for next-generation Ford and Lincoln battery electric vehicles

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