US-based Ford Motor and South Korean battery maker SK On Co along with its subsidiary on Thursday finalized setting up a joint venture for building and operating EV battery production facilities in the United States.
The JV, BlueOval SK, will establish a battery plant for electric vehicles (EV) in Tennessee and two other facilities in Kentucky.
Ford and SK On signed a memorandum of understanding for the JV in May last year. BlueOval SK is expected to produce about 60 gigawatt hours of power annually that could be raised further.
Ford will contribute up to $6.6 billion in capital to BlueOval SK over a five-year period ending in 2026, the automaker said.
Several battery makers have announced plans to invest in the United States, as part of an industry trend to meet the expected growth for EVs and reduce reliance on production in China and cut the related supply chain risks, Reuters news report said.
South Korean battery makers have announced investment plans of $5.5 billion this year in U.S. plants.