Ford, SK Form BlueOvalSK Joint Venture for Battery Production
Ford Motor Company has enlisted the aid of SK Innovation as it continues to ramp up toward its all-electric future. The two companies last month signed a memorandum of understanding to form a joint venture, BlueOvalSK, that will produce battery cells and array modules.
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Per the agreement, BlueOvalSK will generate 60 gigawatt hours annually beginning around 2025. The deal also stipulates that the output could expand as the deal rolls on.
Ford CEO Jim Farley says that the MoU is just the start of its efforts to become the world leader in electrification. The company plans to have at least 240 gigawatt hours of battery cell capacity by 2030, 140 GWh of which will be needed in North America.
“We will not cede our future to anyone else,” Farley said.
SK Innovation hopes to become world leader for EVs
SK Innovation is one of the world’s energy leaders. Based in Seoul, South Korea, SK has been developing EV batteries since 1991 and is nearly unsurpassed in its knowledge. The company hopes that the JV with Ford will help it achieve its goal of becoming one the world’s top three EV battery suppliers by 2025.
“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. “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 automaking.”
Ford is certainly going all-in on electrification. The company recently upped its investment in Solid Power, a solid-state battery manufacturer, and announced its new Ford Ion Park battery R&D center. In terms of products, Ford is already positioning itself as a leader in EVs with the recently launched Mustang Mach-E, the upcoming e-Transit commercial van, and the newly revealed 2022 Ford F-150 Lightning.
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