Trending

Stories

SK Innovation, Ford to Start a Joint Venture of $5.3B for EV Battery in the US

Must Read

The two companies have said that south Korean battery maker SK Innovation and American automaker Ford Motor will establish a 6 trillion won ($5.3 billion) joint venture in the United States to produce batteries for electric vehicles.

The two companies signed a memorandum of understanding on the joint venture, called BlueOvalSK, to build a battery factory with 60 gigawatt hours (GWh) of production in the US by the mid-2020s.

Also Read

Their announcement came a day before South Korean President Moon Jae-in meets with US President Joe Biden in Washington on Friday (US time) to discuss bilateral issues, including cooperation in the growing EV industry, reports Yonhap news agency.

SK Innovation, a refinery-and-battery unit under South Korea’s No. 3 conglomerate SK Group, has been building a $2.6 billion battery factory in Georgia, which will supply batteries for Ford’s F-150 EVs from next year.

SK Innovation aims to expand its global battery production capacity to 85 GWh in 2023 and over 125 GWh by 2025, and the joint venture will expand the capacity to 190 GWh in the next five years, it said.

The joint venture deal comes after SK Innovation last month agreed to pay $1.8 billion to its bigger home rival LG Energy Solution to settle a battery trade secret case, which had clouded its EV battery business in the U.S.

The settlement averted the worst-case scenario for SK, which would have had to abandon its Georgia factory if the 10-year import ban took effect, weighing on the Biden administration’s EV push.

“The joint venture is expected to play a key role in the U.S. administration’s strong drive for the EV industry value chain,” SK Innovation CEO Kim Jun said in a joint statement.

The SK-Ford partnership is expected to be similar to what LG Energy has with another American automaker, General Motors Co., with the two jointly building battery factories in Ohio and Tennessee.

Ford has said it will invest $22 billion in electrification by 2025, vowing to step up efforts to build its own batteries for stable supply of the key component.

Stay updated

Subscribe to our newsletter and never miss an update on the latest tech, gaming, startup, how to guide, deals and more.

Latest

Stories

- Advertisement -
- Advertisement -

Latest

Grow Your Business

Place your brand in front of tech-savvy audience. Partner with us to build brand awareness, increase website traffic, generate qualified leads, and grow your business.

- Advertisement -

Related

- Advertisement -
- Advertisement -
Xiaomi 13 Ultra Global Launch: Offers, Price, Specs Meta Unveils Quest 3 VR Headset, Reduces Price for Quest 2 Foxconn to Manufacture iPhones in Karnataka, India: Creating 50,000 Jobs Amazon Echo Pop: Stylish Semi-Sphere Smart Speaker in India Redmi Display A27: Affordable 27 Inches Monitor with 100Hz Refresh Apple Music Classical App Now Available on Android WhatsApp’s Companion Mode: Same Account, Multiple Devices Nvidia & MediaTek Collaborate on Connected Car Tech Sony Unveils Project Q: A Next-Gen Handheld Game Console Snapchat Hits 200M+ Users in India, Introduces AI Chatbot
Xiaomi 13 Ultra Global Launch: Offers, Price, Specs Meta Unveils Quest 3 VR Headset, Reduces Price for Quest 2 Foxconn to Manufacture iPhones in Karnataka, India: Creating 50,000 Jobs Amazon Echo Pop: Stylish Semi-Sphere Smart Speaker in India Redmi Display A27: Affordable 27 Inches Monitor with 100Hz Refresh Apple Music Classical App Now Available on Android WhatsApp’s Companion Mode: Same Account, Multiple Devices Nvidia & MediaTek Collaborate on Connected Car Tech