Ford Finalizes U.S. EV Battery Joint Venture

Researched by Industrial Info Resources (Sugar Land, Texas)--Ford Motor Company (NYSE:F) (Dearborn, Michigan) has finalized its 50:50 joint venture with SK Innovation Company Limited (Seoul, South Korea) that will build and operate an electric vehicle (EV) battery plant in Tennessee and two more in Kentucky, Ford said in a regulatory filing. The new company, BlueOvalSK, LLC, will supply EV batteries to Ford and its affiliates. Industrial Info is tracking the three major capital-spending projects.

According to the filing document with the U.S. Securities and Exchange Commission (SEC), Ford will contribute up to $6.6 billion in capital spending to the joint venture over five years ending in 2026--subject to any agreed-upon adjustments.

Construction of the $2.9 billion lithium-ion battery plant in Stanton, Tennessee kicked off in March, with first production expected in 2025. The plant will supply batteries for Ford's lineup of fully-electric F-Series trucks. Also at the 3,600-acre site, named BlueOval City, Ford is at work on constructing its fully-owned electric truck manufacturing facility.

The joint venture's BlueOval SK Battery Park in Glendale, Kentucky, about 50 miles southeast of Louisville, consists of two manufacturing facilities that will provide Ford's North American plants with batteries for its future Ford and Lincoln-brand EVs. The $3.4 billion Phase 1 is expected to kick off in October, with completion in 2025. The $2.3 billion Phase 2 is expected to kick off in 2023, with completion in 2026.

Dave Pickering, Industrial Info's vice president of research for the Industrial Manufacturing Industry, has noted battery manufacturing will play a vital role in EV adoption. For more information, see February 7, 2022, article - Automakers Pledge to Electrify Transportation, but Will the Batteries Be There?.

Also in October, Ford expects to kick off a $1.5 billion commercial EV assembly plant expansion in Ohio. The project involves constructing a building addition and installing a new assembly line at the 3.7 million-square-foot facility. In addition, the company plans to retool its Oakville Automotive Assembly Plant in Ontario, Canada, to discontinue assembly of internal combustion engine vehicles and focus on EVs.

In March, Ford announced it would spend $50 billion on EVs through 2026 and said it plans to separate its EV business from the combustion engine division. For more information, see Industrial Info's March 8, 2022, article - Ford to Separate Electric Vehicle and Combustion Engine Businesses.

Click here for a list of detailed project reports mentioned in this article, and click here for a list of related plant profiles.

Industrial Info is tracking 34 active Ford projects, worth more than $16 billion, in North America. Click here for the project reports.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).