Ford & SK On to Solidify Leadership in the Global Electric Vehicle Market Through BlueOval SK  

Ford Motor Company and South Korean battery manufacturer SK Innovation are to invest $11.4 billion in new production facilities in Tennessee and Kentucky to increase the automaker's output of electric vehicles.

Blue Oval City, a $5.6 billion "mega campus" that Ford claims would be one of the biggest car production campuses in the United States, will be the first project. In addition to an electric vehicle battery plant run by the Ford-SK joint venture BlueOvalSK, which will supply the vehicle facility, the 3,600-acre complex will house an assembly plant where Ford will build electric F-Series pickup trucks.

The Ford & SK Partnership

When fully operational, the Dearborn, Michigan-based manufacturer claims that the campus will feature facilities for suppliers, an on-site wastewater treatment facility, and recycling facilities that will help the assembly plant be carbon neutral and send no waste to landfills. Ford wants to begin manufacturing there in 2025.

Ford CEO Jim Farley said in a statement that the firm is working to produce ground-breaking electric vehicles for the many rather than the few.

On September 28, Tennessee Governor Bill Lee stated that the state gave the businesses $500 million in incentives to construct the campus. The state legislature will vote on the incentive package on October 28.

Construction of the plant will take place as Tennessee intensifies its push for electric automobiles and related infrastructure. An agreement to spend $20 million on a network of fast charging stations spaced out every 50 miles along the state's major highways. Interstates were inked in January by the Tennessee Department of Environment and Conservation and the Tennessee Valley Authority. Not just Ford is planning to produce EVs in Tennessee. Volkswagen Chattanooga assembly facility will undergo an $800 million expansion to start the ID Crozz electrified SUVs in 2022. Under the agreement with the US Environmental Protection Agency on the company's previous issue with vehicle emissions, Volkswagen is expected to invest $2 billion in infrastructure for charging zero-emission vehicles.

Only a few months have passed since SK Innovation with LG Energy Solution agreed on a trade secret. It came before the announcement of the new plants. SK Innovation consented to pay LG $1.8 billion in cash and future royalties as part of the settlement. The agreement enables SK Innovation to carry on with the $2.6 billion battery facility outside of Atlanta.

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