SK Inno Chooses Ford... US Electric Vehicle Market Accelerates Rapidly (Comprehensive)

Establishment of Joint Venture for Electric Vehicle Battery Cell Production
Memorandum of Understanding Signed, Official Announcement Expected Soon
Production Expansion and US Market Targeting as Mutual 'Win-Win'
'Check' on LG Energy Solution-GM Partnership

U.S. President Joe Biden visited the Ford Motor Company plant in Dearborn, Michigan, on the 18th (local time) to receive an explanation about electric vehicle assembly. In his speech that day, President Biden said, "The future of the automotive industry is electric vehicles. There is no turning back."

[Asia Economy New York=Correspondents Baek Jong-min, Choi Dae-yeol] SK Innovation is establishing a joint venture with Ford, the second-largest automaker in the United States, to produce battery cells for electric vehicles in the U.S.

According to foreign media on the 19th (local time), SK Innovation and Ford are set to sign a memorandum of understanding (MOU) regarding the establishment of the joint venture on the 20th and will officially announce it soon. The two companies reportedly plan to establish a joint factory to produce battery cells used in electric vehicle batteries.

This decision is analyzed to be the result of aligned strategic interests between Ford, which aims to expand electric vehicle production, and SK Innovation, which seeks to strengthen its presence in the U.S. market. Ford is accelerating efforts to convert key models, including the popular pickup truck F-150 and the Transit van, into electric vehicles.

The U.S. government has selected batteries as a key item to foster in the context of technological supremacy competition with China. A day earlier, U.S. President Joe Biden test-drove Ford’s F-150 Lightning electric truck, emphasizing the importance of the American electric vehicle industry. This vehicle uses batteries supplied by SK Innovation. Discussions on establishing the joint venture reportedly accelerated after SK Innovation reached a settlement in its battery dispute with LG Energy Solution.

U.S. President Joe Biden test-driving Ford's electric pickup truck model F-150
Photo by Yonhap News

Following this agreement, Ford will follow a path similar to that of General Motors (GM), the top U.S. automaker. GM partnered with LG Energy Solution to establish a joint venture and is building a battery factory in Ohio. They also plan to build a factory in Tennessee.

SK Innovation is currently constructing a battery cell factory in Georgia, U.S. The first plant is completed and is undergoing trial operations aiming for mass production within the year, while the second plant is being built right next to it. The second plant aims for mass production in the second half of next year. Batteries produced here will be supplied to Ford and German automaker Volkswagen. SK Innovation plans to invest 3 trillion won in building the first and second plants. President Moon Jae-in is also scheduled to visit SK Innovation’s battery factory construction site during his current visit to the U.S.

Regarding the MOU, Ford only stated that "SK Innovation is a valuable supplier." SK Innovation said, "Due to confidentiality clauses with customers, we cannot comment on specific business details." Besides Korea and the U.S., SK Innovation also has battery cell production facilities in China and Hungary.

This content was produced with the assistance of AI translation services.