SK Inno-Ford, 13 Trillion Won Investment in Battery Joint Venture

Largest Investment in US Electric Vehicle Battery Plant Doubled to Challenge Global Dominance
Investment Amount Doubled

Prototype of the F-150 Lightning displayed at the Ford Rouge Electric Vehicle Center in Dearborn, Michigan, USA

[Asia Economy Reporter Choi Dae-yeol] SK Innovation and Ford have decided to invest $11.4 billion (13.102 trillion KRW) to build electric vehicle battery factories in the United States.

This amount is more than double the investment of 6 trillion KRW announced when the two companies signed a memorandum of understanding (MOU) to establish a joint venture last May, making it the largest investment in electric vehicle battery factories in the U.S. to date. With the U.S. government's full support and the local electric vehicle market growing faster than initially expected, both companies, relatively latecomers in the electric vehicle and battery sectors, are aggressively investing to catch up with leading competitors.

On the 28th, the two companies jointly revealed the battery production sites and detailed investment plans in Tennessee and Kentucky. Ford will invest approximately $7 billion, and SK about $4.45 billion. Previously, Ford announced plans to invest $30 billion by 2025 as part of its electrification strategy. This is also considered the largest investment in Ford's 118-year history as a representative of the U.S. automotive industry. SK approved the joint factory investment at its board meeting the day before.

Once the joint factory is operational, it is expected to have an annual production capacity of 129 GWh, making it the largest in the U.S. The Stanton plant in Tennessee will have an annual capacity of 43 GWh, located on a 4.7 million pyeong site alongside Ford's electric vehicle production plant. The Glendale plant in Kentucky will have an annual capacity of 86 GWh (two units of 43 GWh each) on a site of approximately 1.9 million pyeong.