Ford and its South Korean partner SK On are gearing up to officially kick off trial operations at their new electric vehiclebattery factory in Tennessee, US, in August 2024.
Ford and SK On preparing Tennessee battery plant for testing
Ford and SK On will finally start the BlueOval SK plant’s trial production of innovative electric vehicle batteries next month, Business Korea reports, citing industry sources’ report on July 14.
The imminent trial production marks a major milestone for the joint venture’s goals to accelerate electric vehicle battery production in the US, ensuring Ford’s access to the federal tax credits of up to $7500 under the Inflation Reduction Act.
Ford and SK On reportedly seek to test and guarantee the BlueOval SK plant’s stable quality and yield before bringing it to commercial operations as early as next year.
The BlueOval SK plant
The BlueOval SK electric vehicle battery plant in Tennessee is just a part of the astounding $11.4 billion joint venture between Ford and SK On.
The new facility has already completed the installation of key production equipment and machinery.
SK On will deploy domestic production personnel, mainly involved in the electrode processes, to the site to supervise the upcoming trial production.
The trial production is a key step towards the partners’ plans to launch large-scale operations in 2025.
While the companies have not yet announced the official operation timeline for the new plant, industry experts expect it to start mass production within just a few months following initial trial production.
“Early production is anticipated to be possible by the end of this year, with full-scale operations expected in the first half of next year.”
Business Korea
Solidifying Ford’s EV battery supply chain
Ford and SK On aim to establish three electric vehicle battery factories in Glendale, Kentucky, and Stanton, Tennessee, under their BlueOval SK joint venture.
These planned facilities are expected to hit a total battery production capacity of 127 gigawatt-hours (GWh).
Notably, the Tennessee plant alone will deliver a battery production capacity of 45 GWh.
The 15.53 million sqm BlueOval City in Tennessee will house the BlueOval SK battery plant, Ford’s EV factory, and various parts production lines.
Apart from Ford, SK On is also building a new battery factory in Georgia under its joint venture with Hyundai. The plant is expected to reach an annual production output of 35 GWh.
The new BlueOval SK plant will play a crucial role in Ford’s efforts to accelerate its electric vehicle production, potentially enabling it to claim a larger portion of the US market amid Hyundai’s intensifying dominance.
