'Blue Oval SK', a joint venture between SK on and Ford of the US, will start selecting a process equipment company to build a mega scale battery plant starting from next month. The order amount is estimated to reach up to 8 trillion KRW with two factories with an annual production capacity of 43GWh each. Orders are expected to be placed to domestic process equipment companies that have been working closely with SK on.
According to the industry on the 5th, Blue Oval SK will start a bidding for process equipment to build a battery cell plant with an annual capacity of 43GWh in Tennessee and Kentucky of the US. It is known that Blue Oval SK is investing 5.6 billion USD (about 6.6 trillion KRW) to each plant, so it is expected that only equipment will be around 8 trillion KRW. The selection of companies is carried out in order, starting with logistics and formation equipment for each process and then, mixing, pole plate, and assembly.
So far, SK on usually chose one company for each process, however, since it is their first order for their new venture, there is high possibility that they will be choosing two companies for each process for the stability of facility. It is also expected that the bidding process and standards will be stricter than before, which will be like level of finished cars. Bidding will be held in June at the earliest or July at the latest.
An equipment company official said, “Since this is a plant to be established with Ford, the process of equipment company selection for battery process will be more difficult. This bidding will affect positively in the future contract with Blue Oval SK, therefore it is expected that Korean companies will actively participate.”
Blue Oval SK has set up a 1553 ㎡ site at the Memphis Regional Megasite in Memphis, Tennessee for electric vehicle and battery cell production base, and has recently started public works. They are planning to start the operation by 2025, and they will manufacture Ford’s electric pick-up truck ‘F-Series’ and the batteries. This plant’s battery manufacturing capacity is 43GWh, which is the largest ever in the US for a single plant.
By Staff Reporter Tae-jun Park (gaius@etnews.com)