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Ford Motor Co. has struck a deal with South Korean firm SK Innovation Co. to form a joint venture to build electric-car batteries in the U.S., the latest in the auto industry’s efforts to fortify supplies of this critical part ahead of the rollout of more plug-in models.
The No. 2 U.S. auto maker by sales said Thursday it had entered into a memorandum of understanding with the battery-making company to establish the joint venture, which will be called BlueOvalSK. The partnership aims to build batteries and related components in the U.S. with the goal of producing approximately 60 gigawatt hours annually by mid-decade, the two companies said.
Ford executives said the target output would likely lead the joint venture to build two new battery plants in North America, but details have yet to be completed and are expected to come later this year. The venture and ownership structure are also still under discussion and will be subject to regulatory approvals, the executives said.
“This is all intended to help Ford build the capabilities and expertise to develop and manufacture batteries at scale,” said Hau Thai-Tang, Ford’s chief product and operations officer.
Ford shares were up 3.1% at Thursday’s close.
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