The joint venture is to supply the automaker Ford under the name Blue Oval Sk from 2025. The annual capacity should be 60 gigawatt hours.
The South Korean car battery manufacturer SK Innovation (SKI) wants to expand its production capacities in the USA together with the auto manufacturer Ford. According to their own information, both companies signed an agreement on Thursday in the USA to establish a multi-billion dollar joint venture for the production of battery cells and related equipment.
The name of the joint venture will be Blue Oval Sk and will supply the US automaker from 2025. In addition to Ford, Volkswagen is also an important contractual partner for SKI.
According to SKI, investments of six trillion won (about $5.3 billion) are planned for the new joint venture. Last year, SKI completed its first battery factory in Georgia, and a second factory is under construction there.
“SK Innovation is an important partner that will help deliver batteries with better range and better value for our fully electric vehicles from the middle of the decade,” said Ford managing director for North America, Lisa Drake, as quoted. The annual capacity of Blue Oval SK is expected to be 60 gigawatt hours. This could power around 600,000 e-pick-ups.
The announcement of the joint venture was preceded last month by an agreement between SKI and its domestic competitor LG Energy Solution to end a two-year lawsuit.
LG Energy Solution’s parent company, LG Chem, sued SKI in the US on charges of stealing trade secrets. Volkswagen and US President Joe Biden had welcomed the agreement. LG is currently building a battery factory with General Motors in Ohio, which is due to be completed next year.