FORD, SK INNOVATION ANNOUNCE EV BATTERY JOINT VENTURE

Ford Motor Co. and South Korean battery maker SK Innovation are set to launch a battery joint venture in the United States to support the ramp-up of the No. 2 US automaker's electric vehicle rollout, two people familiar with the matter said.

A memorandum of understanding (MOU) about the joint venture will be announced on Thursday, May 20, 2021, the sources, who asked not to be identified, told Ben Klayman and Heekyong Yang of Reuters.

The deal may eventually include a jointly owned plant to make battery cells for use in rechargeable EV batteries, the sources said.

Ford declined to comment other than to say SK is a valued supplier, but scheduled a conference call for 9 a.m. ETon Thursday to provide "an update on Ford batteries."

SK Innovation said in a statement it does not comment on specific projects for reasons of client confidentiality.

Talks around the joint venture picked up speed last month after SK Innovation agreed to pay $1.8 billion to LG Energy Solution, a wholly-owned subsidiary of LG Chem Ltd.), to settle LG's accusations of trade theft by its rival, one of the sources said.

The dispute, which the administration of U.S. President Joe Biden had been on the verge of settling with a ruling, had put SK Innovation's battery cell plant in Georgia at risk. That plant, which is under construction, will serve Ford and Germany's Volkswagen AG).

Biden on Tuesday called for government grants for new battery production facilities as part of a $174 billion EV proposal during a visit to a Ford EV plant in Michigan. He also referenced his administration's role in brokering the settlement between SK and LG Chem.

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