SK On-Ford 'BlueOvalSK' Breaks Ground on Largest US Battery Plant

Two Factories on 6.28 Million㎡ Site with 43GWh Capacity
90% of Production Line Equipment Handled by Domestic Partners
Choi Jaewon: "The Largest and Most Advanced Battery Factory"

Choi Jae-won, Senior Vice Chairman of SK Group, is delivering a congratulatory speech at the groundbreaking ceremony of the BlueOvalSK Kentucky plant held on the 5th (local time) in Glendale, Kentucky, USA.

[Asia Economy Reporter Oh Hyung-gil] BlueOvalSK, a battery production joint venture between SK On and Ford Motor Company, is building the largest battery factory in the United States.

On the 5th (local time), SK On announced that it held a groundbreaking ceremony for the BlueOvalSK plant in Glendale, Kentucky, together with Ford. The ceremony was attended by SK On Senior Vice Chairman Choi Jae-won, SK On CEO Ji Dong-seop, BlueOvalSK CEO Ham Chang-woo, and Liliana Ramirez, Ford’s Global Talent Development Director, among other executives from both companies. About 400 people, including Kentucky Governor Andy Beshear, U.S. state government officials, partners, and local residents, also participated.

Senior Vice Chairman Choi Jae-won said, "BlueOvalSK symbolizes the perfect partnership and cooperation between the two companies," adding, "At the BlueOvalSK Kentucky plant, which will lead the future of electric vehicles, we will produce the safest and most reliable batteries in the world." He continued, "Over the next two years, BlueOvalSK will build the largest and most advanced electric vehicle battery factory," and added, "Glendale will establish itself as a global hub for the battery industry."

Director Liliana said, "BlueOvalSK will help Ford lead the electric vehicle revolution and bring thousands of new high-tech jobs to Kentucky," adding, "This will be a historic investment for the Kentucky regional economy and employment."

Last May, the two companies agreed to invest a total of 10.2 trillion KRW to build three battery production bases with a combined annual capacity of 129 GWh in Kentucky and Tennessee. This capacity is enough to produce about 1.2 million units annually based on Ford’s F150 Lightning electric vehicle, which uses a 105 kWh battery per vehicle.

In Kentucky, battery plants 1 and 2, each with a capacity of 43 GWh, will be constructed on a total site of 6.28 million square meters (1.9 million pyeong) in the Glendale area. Initial construction work, including site preparation and steel frame installation to build the factory skeleton, is underway starting from the second half of this year. After equipment stabilization, trial operation, and product certification processes, mass production of battery cells is planned to begin sequentially from the first quarter of 2025.

The BlueOvalSK Tennessee plant, also with a capacity of 43 GWh, is scheduled to begin construction within this year aiming for operation in 2025. It will be located on a 15.53 million square meter (4.7 million pyeong) site in the Stanton area of Tennessee, alongside Ford’s electric vehicle production plant.

Choi Jae-won, Senior Vice Chairman of SK Group (left), and Andy Beshear, Governor of Kentucky, are signing an H-beam at the groundbreaking ceremony of the BlueOvalSK Kentucky plant held on the 5th (local time) in Glendale, Kentucky, USA.

The two companies aim to create about 10,000 jobs at BlueOvalSK in the mid to long term. In particular, with the cooperation of the Kentucky state government, the 'Elizabethtown Community & Technical College (ECTC) BlueOvalSK Education Center' will open in 2024 on a 3,900 square meter (1,180 pyeong) site within the Glendale BlueOvalSK complex. The education center will provide training on work simulations, quality, and manufacturing processes for approximately 5,000 employees.

As SK On expands its overseas business, including in the U.S., the effect of co-growth with domestic material and equipment companies is also increasing. At SK On’s sole U.S. plant in Georgia (Plant 1), Korean companies account for 96% of the equipment suppliers. The BlueOvalSK plants are expected to have over 90% participation from Korean equipment companies, and major core materials are also anticipated to have a high participation rate from Korean firms.

SK On’s battery production capacity is projected to reach 77 GWh by the end of this year, and it has presented a blueprint to secure a production capacity of 500 GWh by 2030, aiming to establish itself as the world’s number one battery company.

SK On CEO Ji Dong-seop said, "BlueOvalSK will be the core of electrification in the North American automotive market," adding, "Through BlueOvalSK, we expect the global electric vehicle market leadership of SK On and Ford to become even stronger."

Choi Jae-won, Senior Vice Chairman of SK Group (fourth from the left), and Ji Dong-seop, CEO of SK On (third from the left), along with other key attendees, are posing for a commemorative photo at the groundbreaking ceremony of the BlueOvalSK Kentucky plant held on the 5th (local time) in Glendale, Kentucky, USA.