SK On and Ford's U.S. Joint Venture BlueOvalSK Begins First Commercial Production

Strengthening Local Production Capabilities in Response to Tariffs
Enhancing Flexibility to Meet North American Demand

BlueOvalSK, a joint venture between SK On and Ford Motor Company for electric vehicle battery production, has commenced its first commercial production.

Exterior view of BlueOvalSK Kentucky Plant 1 located in Glendale, Kentucky, USA. BlueOvalSK Instagram

On August 20, SK On announced that BlueOvalSK Kentucky Plant 1, located in Glendale, Kentucky, USA, has begun producing batteries with a capacity of approximately 37 gigawatt-hours (GWh) for Ford's electric pickup truck, the F-150 Lightning, and the electric cargo van, the E-Transit.

The plant is also expected to produce batteries for future electric vehicle models from Ford and Lincoln.

SK On and Ford established BlueOvalSK in July 2022 and committed a total investment of $11.4 billion (approximately 16 trillion KRW) to build three battery plants in two locations: Glendale, Kentucky, and Stanton, Tennessee. The Tennessee plant is scheduled to begin operations next year, while the start date for Kentucky Plant 2 has not yet been determined.

Amid the increased importance of localizing production in the United States due to the tariff policies of the Trump administration, SK On has further strengthened its U.S. production capabilities with the launch of BlueOvalSK Kentucky Plant 1, in addition to its own SK Battery America plant in Georgia.

SK Battery America, which began production in 2022, is reportedly operating its battery cell production lines at full capacity, driving the robust performance of SK On's North American business.

In addition, SK On is expected to respond more flexibly to orders from the North American region in the future, thanks to the expansion of its production facilities in the United States.

With the launch of Kentucky Plant 1, Ford has secured a more stable battery supply. Ford, which recently announced plans to launch a mid-size electric truck equipped with lithium iron phosphate (LFP) batteries in the $30,000 range, is now able to pursue a more diversified electrification strategy through the operation of the joint venture plant producing nickel-cobalt-manganese (NCM) batteries.

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