Ford and South Korea’s SK Innovation (SKI) have signed a memorandum of understanding (MOU) to form an electric vehicle (EV) battery manufacturing joint venture called BlueOvalSK.
The deal, which we first told you about yesterday, will see the two companies manufacture battery cells and arrays in the US.
As Ford begins its global EV rollout, it is anticipating needing at least 240GWh of battery cell capacity by 2030. To help reach that target, BlueOvalSK expects to begin production “mid-decade”, at which time it will produce approximately 60GWh annually, with potential to expand in the future.
In a press release, SKI says 60GWh will be enough for about 600,000 F-150 Lightning pickup trucks, which each require about 100kWh.
“Through the JV, Ford and SK Innovation will jointly develop and industrialize battery cells at scale that are tailored to deliver optimum performance and value for our Ford and Lincoln customers,” said Lisa Drake, Ford’s North America chief operating officer. “SK Innovation is an important partner in helping deliver batteries with better range and value for our fully electric vehicles by mid-decade.”
The new deal comes just over a month after SKI settled a long-standing dispute with rival EV battery maker, LG Energy Solutions. Facing a 10-year importation ban into the US, SKI agreed to pay a $1.8 billion USD to LG Energy Solutions in a confirmed settlement. The payment was split between cash and royalties.