Seeing Eye to Eye
SK On’s and Ford’s U.S. joint battery project is proceeding without a hitch. Some analysts suspected that the two companies have not been getting along due to a failure to set up a European joint venture, but rather they further solidified their relationship with this discord rumor as an opportunity.
According to industry sources on March 26, the two companies successfully held an event related to Blue Oval City in Stanton in the state of Tennessee in the United States on March 24 (local time). Blue Oval City is a comprehensive electric vehicle production complex built on a 15.53 million square meter site. This will be home to battery plant of BlueOval SK, a joint venture (JV) established by the two companies, Ford’s electric vehicle plant, and various parts production facilities.
Launched in July of last year, BlueOval SK will build battery production facilities with a total capacity of 129 GWh in Tennessee and Kentucky. One plant with a capacity of 43 GWh will be built in Standon, Tennessee, and two battery plants of the same size will be built in Glendale, Kentucky. They aim to roll out products beginning from 2025, and batteries produced by BlueOval SK will power major Ford and Lincoln electric vehicle models.
Contrary to concerns of those in the industry and market, the partnership seems strong. Sources say that at this event, the two companies saw eye to eye on a consensus that their cooperation holds the key to expanding their business in the North American electrification market. SK On will exclusively supply batteries for the F-150 Lightning, a major electric vehicle model of Ford that ranks second in the electric car sales rankings in the United States after Tesla.
The U.S. government has a strong interest in the partnership between the two companies. This is because not only the JV but also electric vehicle battery projects promoted by companies are directly related to local job creation. U.S. Secretary of Transportation Pete Buttigieg, who created a sensation in the Democratic presidential primary and took the lead in promoting U.S. electrification revitalization policy after the inauguration of President Joe Biden, also visited the BlueOval SK Kentucky campus earlier this month. “It is not just a plant. It is creating a better future,” he emphasized.
“BlueOval City will play a leading role in the future of the American auto industry,” Tennessee Governor Bill Lee said on the day of the event. Ford still has strong trust in SK On. Prior to this event, Ford CEO Jim Farley expressed satisfaction through his social media account, saying, “The construction of the BlueOval City is progressing rapidly,” adding, “The project has achieved unbelievable results in one year.”