Ford, SKI to form EV battery joint venture, production slated for mid-decade

Pittsburgh — Ford and SK Innovation have signed a preliminary deal to create a joint venture to produce about 60 GWh/year of electric vehicle battery cells and array modules, the companies said May 20.

The new entity, BlueOvalSK, will begin producing batteries by "mid-decade," according to a joint statement the companies released.

"Through the JV, Ford and SKI will jointly develop and industrialize battery cells at [a] scale ... tailored to deliver optimum performance and value for our Ford and Lincoln customers," Lisa Drake, Ford's North America chief operating officer, said. "SKI is an important partner in helping deliver batteries with better range and value for our fully electric vehicles by mid-decade."

The JV, currently under the agreement through a memorandum of understanding, represents Ford's latest move to boost electrification of its fleet. Earlier this year, Ford announced plans to invest at least $22 billion through 2025 to deliver connected, all-electric vehicles, including electric versions of its popular Mustang and F-150 models.

"This MOU [with SKI] 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," Ford CEO Jim Farley said.

The automaker said it expects to need about 240 GWh of global battery cell production capacity by 2030 to power its vehicles.

SKI CEO Kim Jun said the joint venture with Ford will play "a pivotal role in fleshing out the electric vehicle value chain in the US, a key objective of the current US administration."