Ford Partners with SK, Aiming for 40% Electric Vehicle Share by 2030

Investment Amount Increased by 36% Compared to Previous Period

Photo by WSJ

[Asia Economy Reporter Yujin Cho] Ford Motor Company in the United States, which has partnered with SK Innovation to produce batteries for electric vehicles, is accelerating its transition to electric cars.

Ford announced plans to increase the share of electric vehicle sales to 40% by 2030, according to a report by The Wall Street Journal (WSJ) on the 26th (local time).

To achieve this, it plans to increase its investment in electric vehicle development to $30 billion (approximately 34 trillion KRW) by 2025. This is about a 36% increase from the $22 billion investment announced earlier this year.

This amount also includes the funds allocated for direct production of electric vehicle batteries through the joint venture established with SK Innovation, announced last week.

Jim Farley, CEO of Ford, said, "This is the greatest opportunity for growth and value creation since Henry Ford began mass-producing the Model T."

Under former CEO Jim Hackett, Ford had lagged behind competitors in the electric vehicle development race, but since Farley took office last year, the company has been betting on the future of electric vehicles and expanding its investments.

Ford's first electric pickup truck, the 'F-150 Lightning,' which was unveiled on the 19th, has already received 70,000 pre-orders, showing strong initial demand, the company said.

The F-150 Lightning is equipped with SK Innovation's battery, which can travel up to 300 miles (approximately 482 km) on a single charge.

CEO Farley said the F-150 Lightning, as an electric pickup truck based on the long-standing popular F series, will serve as a test to see whether mainstream Americans truly want electric vehicles.

Joseph Spak, an analyst at RBC Capital, said in an investment note, "Ford's challenge will be to secure a foothold in the electric pickup truck sector as part of the electric vehicle transition."

Additionally, Ford announced that it has internally created a commercial vehicle service division called 'Ford Pro' targeting corporate customers.

The plan is to increase sales in the commercial vehicle service sector from $27 billion in 2019 to $45 billion in 2025 by providing corporate customers not only with vehicles but also with digital tools for electric vehicle chargers and vehicle location tracking.

WSJ reported that CEO Farley, who started his career at Toyota Motor Corporation and gained significant experience as Ford's marketing chief, is accelerating Ford's electric vehicle ambitions.

Before Ford, General Motors (GM), the largest automaker in the U.S., also announced plans to phase out most internal combustion engine vehicles by 2035 and transform into an electric vehicle company.