Speaking to the media earlier this month, Ryu Jin-suk, the head of SK On’s strategy team, highlighted the growing demand for local supply chain capabilities among automotive OEMs in the North American market. Ryu further stated, “In addition to our joint ventures with Ford and Hyundai Motor, we are exploring opportunities for collaboration with various customers.” (The image depicts the construction progress of Plant 2 in Georgia, USA. The image courtesy of SK On)
SEOUL, May 23 (Korea Bizwire) —In a recent development, SK On, the Seoul-based battery manufacturer currently engaged in a joint venture with Ford Motor Company in the United States, has expressed unease regarding Ford’s announcement regarding the procurement of its own raw materials.
SK On denies having engaged in any discussions with Ford regarding the supply of materials to BlueOval SK, the joint venture shared between the two companies.
During its investor day event on May 22, Ford unveiled its medium- to long-term supply strategies for lithium and nickel, crucial minerals required to produce electric vehicle components.
The automotive giant disclosed plans to secure battery-grade lithium hydroxide, totaling 100,000 metric tons, from Albemarle, a leading U.S.-based lithium producer, and SQM from Chile, the world’s second-largest lithium producer. This quantity is expected to enable the creation of 3 million electric vehicle batteries.
Significantly, Ford emphasized its intention to obtain a significant portion of the essential raw materials for electric vehicle batteries from its own supply chain.
This move has been widely interpreted as an endeavor to enhance profitability and increase the cost competitiveness of electric vehicles by directly procuring lithium and nickel, critical raw materials for cathodes.
While Ford is currently in the process of constructing three battery production plants in the United States—two in Kentucky and one in Tennessee—through its collaboration with SK On under the banner of BlueOval SK, this announcement has raised questions regarding whether the joint venture will also rely on Ford’s supply chain for material sourcing.
BlueOval SK factory in Kentucky
Ford has not disclosed specific details regarding the sources or quantities of raw materials. However, industry experts generally speculate that Ford may be considering a plant developed in partnership with battery manufacturers.
An official from SK On clarified, “While we do not possess comprehensive knowledge regarding Ford’s supply plan, we have not engaged in any discussions or agreements concerning the supply plan for BlueOval SK.
The determination of raw material sourcing for BlueOval SK will be the subject of future discussions between Ford and SK On, with the goal of ensuring a stable supply of high-quality materials.”
The battery joint venture between Ford and SK On in the United States is scheduled to have an impressive total capacity of 129 gigawatt hours (GWh).
In addition to this collaboration, Ford has also formed partnerships with LG Energy Solutions to establish a 25 GWh battery plant in Turkey and with China’s CATL to construct a 35 GWh plant in Michigan.
These ventures reflect Ford’s concerted efforts to strengthen its position in the electric vehicle market and lead advancements in battery technology.
M. H. Lee (mhlee@koreabizwire.com)
