BlueOval SK commences production of its inaugural electric vehicle battery product
In a significant milestone for the electric vehicle (EV) industry, BlueOval SK, a joint venture between SK On and Ford, has commenced commercial production of electric vehicle batteries at its first Kentucky plant, located in Glendale.
The Kentucky 1 plant's production of batteries signifies a strengthening of BlueOval SK's position in the EV battery market. The batteries produced by BlueOval SK are meant for use in next-generation electric vehicles, powering Ford's vehicles specifically.
The $11.4 billion investment by SK On and Ford to build three battery production facilities – two in Glendale, Kentucky and one in Stanton, Tennessee – has sparked a surge of new investment and job announcements in Kentucky.
As CEO of BlueOval SK, Michael Adams, mentioned, securing new clients is "fairly high" due to the stalling EV demand. Despite this, the first battery produced by BlueOval SK was delivered to Ford for use in the F-150 Lightning, an electric pickup truck.
Ford will instead shift focus to smaller, more affordable cars and launch a midsize, four-door electric pickup in 2027. However, there have been rumors that BlueOval SK was nearing a contract to sell batteries to Nissan. No confirmations have been made regarding this potential contract.
The Kentucky 1 factory's production of batteries will also include those for Ford's current E-Transit electric van. The car manufacturer suspected to have signed a contract with BlueOval SK for the supply of batteries is Ford, as BlueOval SK is a joint venture between Ford and SK On.
Kentucky Governor Andrew Beshear stated that the start of production at the Kentucky plants marks a historic milestone. He expressed his gratitude to both Ford and SK On for their investment and commitment to the state, creating jobs and driving economic growth.
As the EV market continues to grow amid prolonged stagnation, BlueOval SK's battery production is happening at a crucial time. Ford has delayed the launch of two new EVs, the next-generation models of the F-150 Lightning and E-Transit, to 2028.
Despite the challenges, BlueOval SK's CEO, Michael Adams, stated that the start of production is a significant milestone for the company. He expressed his excitement for the future of BlueOval SK and its role in the EV industry.
