SK and Ford Narrow Down US Battery Plant Site Candidates... Ohio and Texas Mentioned

Joint Venture Establishment and Battery Plant Site Selection Procedures Remaining
Ohio and Tennessee States Compete for LG-GM Joint Plant
Texas Without Ford Plant, SK's U.S. Base in Georgia

The recently unveiled Ford electric pickup truck, the F-150 Lightning, is reported to use batteries from SK Innovation.

[Asia Economy Reporter Choi Dae-yeol] The candidate site for the factory to be operated by the electric vehicle battery joint venture between SK Innovation and Ford has come into focus. While Ohio is expected to be the most likely location, it is notable that Texas, which is also highly preferred among companies within the U.S., has been listed as a final candidate site.

According to industry sources, SK and Ford are expected to establish the joint venture (BlueOvalSK) as early as the first half of this year and complete the site selection for the factory as soon as possible. Considering the goal of commercial production around 2025, construction must begin by the year after next at the latest. The construction period and post-completion yield stabilization for mass production typically take three years or more.

To this end, SK and Ford have narrowed down several candidate sites. According to an interview with Ji Dong-seop, head of SK Innovation’s Battery Business Division, with a local Atlanta media outlet, the two companies are reviewing Ohio, Tennessee, Texas, and Georgia as final candidate sites. They have only announced plans to build two factories with an annual capacity of about 60GWh but have not disclosed specific locations so far.

In September last year, former U.S. President Donald Trump and Steve Burn, CEO of Roztown Motors, are talking in front of an electric pickup truck set up at the White House.

A battery factory being built in Ohio, USA by Ultium Cells, a joint venture between LG Energy Solution and GM. Photo by LG Energy Solution

Ohio, along with neighboring Michigan, is a representative hub for automobile manufacturing in the U.S. It ranks second in automotive-related workforce and fourth in production volume nationwide. Over the past five years, Ford’s investment in Ohio totaled $1.375 billion, surpassing General Motors (GM) to rank first among major automotive companies.

The state government is actively attracting investment, focusing on the electric vehicle sector, which has high future growth potential. The first plant of Ultium Cells, a joint venture between LG Energy Solution and GM, is under construction with a target to begin operations next year. GM, which has announced its transition to an electric vehicle company, has many plants across the U.S., with the Rose Town area in Ohio serving as one of its key hubs.

Rose Town Motors, named after the region, is gaining attention as a new electric vehicle startup, and Japanese automaker Honda has reportedly decided to produce eco-friendly vehicles in Ohio, where it has been active since its early days in the U.S. Automotive parts suppliers such as Dana, Schaeffler, and Navistar, which have actively invested in Ohio, are also pursuing electrification strategies by acquiring electric propulsion system and related software companies.

Samsung Electronics semiconductor factory in Austin, Texas, USA, operating since 1998

Texas, along with Ohio, competes for first and second place in state-level economic development projects in the U.S. Known domestically for Samsung Electronics’ semiconductor plant in Austin, Texas is favored by technology companies due to its low tax burden and abundant skilled workforce. Although major automobile plants are limited to GM, Tesla, and Toyota, the state is actively working to develop and attract companies related to eco-friendly clean energy technologies, including battery technology.

It is noteworthy that Ford, which has factories across the U.S., has included Texas?a state where it currently has no plants?as one of the final candidate sites. This decision is interpreted as considering the importance of software infrastructure based on technology and human resources or, conversely, anticipating high growth potential and the possibility of large-scale investment alongside Ford.

Other mentioned states, Tennessee and Georgia, are regions where existing automobile plants are mainly located. Tennessee is set to build the second plant of the LG-GM joint venture and hosts a plant chosen by Volkswagen, the world’s second-largest electric vehicle manufacturer, as its U.S. electric vehicle production hub. Nissan also produces its previously popular electric vehicle model, the Leaf, at a plant in Tennessee. Georgia is where SK is building or planning to build its dedicated electric vehicle battery plants 1 and 2, and the state government is actively interested in fostering the electric vehicle ecosystem and attracting external companies. SK is also considering building plants 3 and 4 adjacent to plants 1 and 2.

SK Innovation's U.S. battery business subsidiary, SK Battery America, is building a battery factory in the Commerce area of Georgia, USA. The first plant is completed, and construction of the second plant is underway. Photo by SK Innovation