Ford, SK Innovation Create JV To Make Battery Cells, Arrays In The US - Quick Fact

Automaker Ford Motor Co. (F) and South Korean energy conglomerate SK Innovation announced Thursday they have 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.

Through the JV, the two companies will jointly develop and industrialize battery cells at scale that are tailored to deliver optimum performance and value for our Ford and Lincoln customers. This will help deliver batteries with better range and value for Ford's fully electric vehicles by mid-decade.

The creation of the JV is subject to definitive agreements, regulatory approvals and other conditions. The next-gen cells and arrays will be used to power several future Ford battery electric vehicles.

The BlueOvalSK JV builds on Ford's recently announced investments to accelerate R&D of battery technology and manufacturing, including a new global battery center of excellence and an additional investment in a solid-state battery startup.

Ford's global BEV plan calls for at least 240 gigawatt hours (GWh) of battery cell capacity by 2030, roughly 10 plants' worth of capacity. Approximately 140 GWh will be required in North America, with the balance dedicated to other key regions, including Europe and China.

Ford plans to lead the electric vehicle revolution, including by delivering fifth-generation lithium ion batteries as well as preparing for the transition to solid-state batteries, which promise longer range, lower cost and safer EVs for customers.

SK Innovation will be supplying batteries for the fully electric version of Ford's legendary and best-selling F-150 pickup truck. SK Innovation has a spotless health and safety record and has not registered a single EV battery-related fire.

SK already operates a battery plant in Commerce, Georgia to serve two global OEMs. It is also expanding its production capacity in the European Union and China. SK plans to become one of the world's top three EV battery suppliers by 2025 with over 125 GWh in global production capacity.

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