A joint venture between SK On and Ford, BlueOval SK, is building a plant in Kentucky mass-producing EV batteries. The joint venture targets the America’s EV market with the goal of operating in the first quarter of 2025. The demand for batteries is increasing as the US emerges as a major market for EVs,.
On the 6th, SK On announced that the company held a groundbreaking ceremony with Ford on the 5th for the BlueOval SK plant in Glendale, Kentucky (local time). About 400 people attended the event, including SK On Executive Vice Chairman Jae-won Chey, SK On CEO Dong-seop Ji, Blue Oval SK CEO Chang-woo Hahm, Ford Global Workforce Development Director Liliana Ramirez, and Kentucky Governor Andy Beshear.
BlueOval SK will build 1st and 2nd EV battery plants each with a capacity of 43 gigawatt hours (GWh) by 2025 on a 6.28 million square meter (1.9 million pyeong) in Glendale. The initial construction work, including leveling and steel frame installation work to raise the factory frame has begun in the second half of this year. Including one in Tennessee, BlueOval SK plans to build a total of three plants. The Tennessee plant will be built on a site of 15.53 million square meters (4.7 million pyeong) in Stanton, Tennessee, and simultaneously have a Ford EV production plant as well.
Investing a total of KRW 10.2 trillion with Ford, SK On anticipates to create more than 10,000 jobs and export 129GWh of batteries. The plan is to supply batteries for 1 million EVs from two plants in Kentucky. Elizabethtown Community and Technical University (ECTC) will have a Blue Oval SK Education Center in the Kentucky. It will have a capacity to train 5,000 employees on job simulation and quality manufacturing processes.
SK On seeks shared growth with its suppliers by expanding its battery business in the US. 96% of equipment suppliers are domestic companies at SK On’s Georgia plant. The participation rate of domestic equipment manufacturers is expected to exceed 90% after the BlueOval SK plant bidding has ended. It is expected to have a high participation rate from domestic companies in battery materials as well.
Executive Vice Chairman Jae-won Chey said, “BlueOval SK will build the largest and most advanced EV battery plant. The Kentucky plant will produce the world's safest and most reliable batteries.” SK On CEO Dong-seop Ji said, “BlueOval SK will be the key player for electrification in the North American automobile market. SK On and Ford's leadership in the global EV market will be further consolidated through BlueOval SK.”
By Staff Reporter Ji-woong Kim (jw0316@etnews.com)