Ford Motor and SK Innovation plan to spend $11 billion

Ford Motor and SK Innovation plan to spend more than $11 billion to create EVs and batteries

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Michigan based automobile manufacturer Ford Motor (F) collaborated with battery supplier SK Innovation (096770.KS) to invest more than $11.4 billion to produce electric vehicles and batteries. Both companies have a vision behind this big investment to create around 11,000 jobs. 

Ford is building new U.S. facilities, including twin lithium-ion battery plants in central Kentucky and a 3600-acre campus in west Tennessee. The battery manufacturing plant will be built on this campus. The car manufacturer is planning to open four new plants with South Korea-based petroleum refining company SK Innovation. 

Along with manufacturing units, there will be a new assembly plant for Ford electric F-series trucks and a recycling center on 3600-acre premises. The automaker plans to upscale the overall inventory of the vehicles. Both companies look after the current global semiconductor chip shortage that hit the automobile industry severely. 

The collaboration of both companies is expected to help manage and develop the traditional operations for more profits. Analysts said that the investment would help work on several emerging areas, including electric, auto and connected vehicles. The automaker said that it is not planning to take more debt for production and development. Instead, they will only use the company’s profits, the Chief executive said.   

From the new funding, both companies are planning to invest $7 billion before February 2022.  Production at battery plants except for one plant in central Kentucky will begin in 2025. Ford (F) stock price has almost doubled since the new CEO Jim Farley led the automaker a year ago. 

Around $6 billion will be invested in Blue Oval City in Stanton, Tennessee, and the remaining will go for two inventories situated in  Glendale, Kentucky. Ford officials said the three new manufacturing plants of BlueOvalSK have the capacity to power 1 million electric vehicles annually.

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