Ford and SK Innovation are investing $11.4 billion to build the largest assembly and battery complex in the U.S. It is the largest investment in the 118-year history of the No. 2 U.S. automaker, which is the world’s first company to create mass production system for automobiles. When the investment is completed, SK Innovation will become the biggest battery producer in the U.S.
In Tennessee and Kentucky on Tuesday (local time), the two companies held events to announce their plan inject $11.4 billion to build new electric vehicle assembly and battery production complexes in the U.S.
The two companies are planning to build three battery plants through a joint venture called BlueOvalSK. Separately, Ford will build an electric vehicle assembly plant. The two companies will invest $4.45 billion each to build battery plants and Ford will spend $2.5 billion to build an assembly plant. Plants are expected to begin operation in 2025.
It is the largest single investment in Ford’s history and the biggest investment made on battery plants in the U.S. As much as 78 percent of the entire investment will be focused on battery plants. If the engine was the core part in the ear of internal combustion engine, battery is the key in the era of electric vehicle. It is meaningful that a joint venture with a Korean firm is taking charge of building the battery plants.
A total annual production capacity of BlueOvalSK is expected to be 129 gigawatt hours, which is enough to produce 2.15 million units of electric vehicles equipped with 60 kilowatt hours of batteries. This is more than double the 60 gigawatt hours announced by the two companies in May ahead of South Korea-U.S. summit.
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