Louisville: SK On, the battery-making unit of South Korea's SK Group, announced the commencement of commercial production of electric vehicle batteries at its first Kentucky plant through its joint venture with Ford Motor Co. The 50:50 joint venture, known as BlueOval SK, marks a significant step in the EV battery sector.
According to Yonhap News Agency, SK On and Ford established BlueOval SK in July 2022 with a planned investment of 16 trillion won (US$11.4 billion) to build three U.S. battery plants, including two in Kentucky and one in Tennessee. The batteries produced at the Kentucky 1 plant are designated to power Ford's all-electric F-150 Lightning pickup truck and the extended-range E-Transit cargo van.
BlueOval SK Chief Executive Officer Michael Adams stated, "The start of production is a significant milestone that strengthens our position in the EV battery market." He emphasized the joint venture's role in creating American jobs, enhancing the domestic supply chain, and contributing to zero-emissions transportation.
Plans for the joint venture include commencing operations at its Tennessee facility next year, though the timeline for the second Kentucky plant remains undecided. In response to extensive U.S. import tariffs, SK On has been expanding its manufacturing presence in the country. Besides the Kentucky 1 plant, SK On operates two wholly owned facilities in Georgia and is collaborating with Hyundai Motor Group on another plant set to begin production in 2026.
Hyundai Motor Co. and its affiliate Kia Corp., which have auto assembly plants in Georgia and near Atlanta, source batteries from SK On's Georgia facilities.