SK On, Ford, and EcoPro BM Jointly Invest in Anode Material Production Facility

Visitors at the SK On booth are examining the displayed NCM9 batteries at 'InterBattery 2022,' a specialized battery exhibition including secondary batteries, held last March at COEX in Gangnam-gu, Seoul. [Image source=Yonhap News]

[Asia Economy Reporter Donghoon Jung] SK On announced on the 22nd that it will jointly invest with global automaker Ford and cathode material producer EcoPro BM to establish a cathode material production facility in North America.

The three companies recently signed a Letter of Intent (LOI) for the joint investment. They plan to sign a formal contract for the joint investment within this year and begin construction of the plant in the second half of next year. The investment amount, share ratio, and plant location are currently being negotiated. Cathode materials are essential components that determine battery performance.

The cathode materials produced at this facility will be supplied to 'BlueOvalSK,' the joint battery plant recently established by SK On and Ford. By building a value chain that connects materials, components, and finished products, the three companies aim to create a robust supply chain, secure price competitiveness, and strengthen their partnership.

The three companies have already established collaborative lines with each other's core products. EcoPro BM supplies high-performance high-nickel cathode materials to SK On. SK On, leveraging its safety technology and manufacturing capabilities, developed the world's first NCM9 (nickel content over 90% among nickel, cobalt, and manganese) battery and supplies it to Ford's F-150 Lightning electric truck. This vehicle was launched in the market this spring and has gained popularity among consumers.

For SK On, which is rapidly expanding its production base in North America, this collaboration ensures a stable supply of high-performance cathode materials, essential for batteries. Furthermore, it brings the company one step closer to its localization strategy goal of encompassing raw material procurement and production beyond battery manufacturing locally.

SK On continues to invest in the North American market, considered one of the world's three largest automotive markets alongside Europe and China. It has secured two plants in Georgia, USA, with a total investment of 3 trillion KRW. The first plant with a capacity of 9.8 GWh has been in commercial operation since early this year, and the second plant with a capacity of 11.7 GWh will begin commercial operation next year.

With Ford, SK On launched the joint venture BlueOvalSK, which plans to sequentially operate joint production plants with a total capacity of 129 GWh in Tennessee and Kentucky from 2025 to 2026.

Kim Yongjik, Head of Material Procurement at SK On, said, "By strengthening the supply chain of core materials, we will produce more competitive batteries and lead the global electric vehicle market."

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