The creation of a joint venture with South Korea's SK was recently announced by Ford. According to the announcement, the partnership of the two companies will allow the manufacture of battery cells and modules in the United States. This decision was made by Ford, in order to give meaning to its big electrification plan.
BlueOvalSK is the name of the new company created by Ford and SK Innovation. The objective of this company will be to reach, within a few years, a production of 60 gigawatt-hours per year. Ford wants to make its mark in the automotive world and this project is one of many strategies in view.
Indeed, the new joint venture is a central element in Ford's plan. There are several other things that will happen over time. At the end of April, Ford had already announced the launch of a research centre. This centre will focus its research on battery cells, announcing the beginning of an in-house production.
Indeed, as the race intensifies in the field of electric cars in the United States, the manufacturer has decided to go on the offensive. Announced at the beginning of the year, its objective would be to devote a budget of 22 billion dollars to the production of fuel-free cars.
Ford caused quite a stir in the U.S. when it unveiled its electric F-150 pickup, which was tested by U.S. President Joe Biden in person. SK Innovation was pleased to be part of Ford's plan. The latter is now one of the key players in the electrification of vehicles in the United States.
In addition, it should be noted that the South Korean company was embroiled in a dispute over a trade secret case involving lithium batteries. However, in April this year, an out-of-court settlement was reached with fellow South Korean LG Chem to settle the case. Thanks to this agreement, SK Innovation will now be able to complete its construction of facilities in the state of Georgia.
Ford, meanwhile, announced that its Michigan plant will now change its name. Formerly known as the "Van Dyke Transmission Plant", it will now be called the "Van Dyke Electric Powertrain Center". This change is intended to adapt the name of the site to its new role in the transition plan to electric.
After Ford's commitment to electric vehicles, General Motors has also decided to start its own battery production. To do so, the group has teamed up with South Korea's LG, with whom it has also formed a joint venture. In fact, construction of a battery cell factory has already begun. Located in Lordstown, Ohio, this 2.3 billion dollar project is expected to be completed in 2022.
The joint venture between the two companies is called Ultium Cells. Through this joint venture, GM and LG have decided to build a new plant with an additional investment of 2.3 billion. This plant will be built in the United States, more precisely in Tennessee.
In addition, most American car manufacturers are gradually moving away from fuel-based cars to electric cars. This is not only good for the planet, but also for these companies, which are attracting more and more eco-responsible investments.