Ford, SK Innovation to Invest $11 Billion to Build Mega EV and Battery Facilities
The two facilities are expected to create 11,000 jobs in the United States
The companies will form a new joint venture called BlueOvalSK to build these manufacturing facilities.
The mega-facilities will be developed in Tennessee and Kentucky and are expected to create around 11,000 jobs. They will be commercially operational by 2025 and produce the next generation of electric trucks and batteries to power future electric Ford and Lincoln vehicles.
Blue Oval City, a manufacturing facility in Tennessee, will be developed with an investment of $5.6 billion. The facility will become a vertically integrated ecosystem to assemble a lineup of electric F-series vehicles. The facility is also expected to include a battery production unit.
“This is our moment – our biggest investment ever – to help build a better future for America,” said Jim Farley, Ford president, and CEO. “We are moving now to deliver breakthrough electric vehicles for the many rather than the few. It’s about creating good jobs that support American families, an ultra-efficient, carbon-neutral manufacturing system, and a growing business that delivers value for communities, dealers, and shareholders.”
In Kentucky, the two companies will invest $5.8 billion to develop a battery manufacturing complex, ‘BlueOvalSK Battery Park .’ The complex will have two manufacturing facilities that supply batteries for next-generation electric Ford and Lincoln vehicles. These manufacturing facilities are expected to produce 86 GWh capacity annually.
Ford said its $7 billion investment is the largest ever manufacturing investment at one time by any automotive manufacturer in the U.S. The company expects 40% to 50% of its global vehicle volume to be electric by 2030.
The automobile manufacturer will collaborate with Redwood Materials, a battery material company, to make more sustainable and affordable electric vehicles. The company aims to localize supply chain networks and create recycling options for scrap, end-of-life vehicles, and lithium-ion.
Ford said it would invest $90 million in Texas as a part of $525 million total investment across the U.S. over the next five years. The investment will be utilized for job training and readiness initiatives to create a pool of highly skilled technicians.
Mercom had earlier reported that Mahindra Group and Ford Motor are developing sports utility vehicles and small electric vehicles as joint initiatives.
Harsh Shukla is a staff reporter at Mercom India. Previously with Indian Express, he has covered general interest stories. He holds a Masters Degree in Journalism from Symbiosis Institute of Media and Communication, Pune.