Ford and SK Innovation are Investing $11.4B to Build Electric Vehicle Facilities in Tennessee and Kentucky

[Razorbak86]

Ford to Lead America’s Shift to Electric Vehicles with New Mega Campus in Tennessee and Twin Battery Plants in Kentucky; $11.4B Investment to Create 11,000 Jobs and Power New Lineup of Advanced EVs

• Ford to bring electric zero-emission vehicles at scale to American customers with the largest, most advanced, most efficient auto production complex in its 118-year history
• Called Blue Oval City, the complex will be constructed on a nearly 6-square-mile site in west Tennessee and build next-generation electric F-Series pickups and advanced batteries
• Moreover, a new BlueOvalSK Battery Park is to be built in central Kentucky consisting of twin battery plants that will power a new lineup of Ford and Lincoln EVs
• Ford and SK Innovation plan to invest $11.4 billion and create nearly 11,000 new jobs – close to 6,000 in Stanton, Tennessee, and 5,000 in Glendale, Kentucky; production of the new electric vehicles and advanced lithium-ion batteries will begin in 2025
• Three new BlueOvalSK battery plants – two in Kentucky and one in Tennessee – will enable 129 gigawatt hours a year of U.S. production capacity for Ford
• These investments build on Ford’s recent announcements that it will work with Redwood Materials on closed-loop domestic battery recycling and make a new investment to increase production of the F-150 Lightning pickup in Dearborn, Michigan, starting next year
• Ford is investing $90 million in Texas – $525 million total in the U.S. to train skilled technicians to service connected, electric zero-emission vehicles

DEARBORN, Mich., Sept. 27, 2021 – Ford Motor Company is announcing plans to bring electric vehicles at scale to American customers with two new massive, environmentally and technologically advanced campuses in Tennessee and Kentucky that will produce the next generation of electric F-Series trucks and the batteries to power future electric Ford and Lincoln vehicles, together with its partner, SK Innovation, plans to invest $11.4 billion and create nearly 11,000 new jobs at the Tennessee and Kentucky mega-sites, strengthening local communities and building on Ford’s position as America’s leading employer of hourly autoworkers.

An all-new $5.6 billion mega campus in Stanton, Tenn., called Blue Oval City, will create approximately 6,000 new jobs and reimagine how vehicles and batteries are manufactured.

Ford plans to make the largest ever U.S. investment in electric vehicles at one time by any automotive manufacturer and Blue Oval City will become a vertically integrated ecosystem for Ford to assemble an expanded lineup of electric F-Series vehicles and will include a BlueOvalSK battery plant, key suppliers and recycling. Ford’s new Tennessee assembly plant is designed to be carbon neutral with zero waste to landfill once fully operational.

In central Kentucky, Ford plans to build a dedicated battery manufacturing complex with SK Innovation – the $5.8 billion BlueOvalSK Battery Park – creating 5,000 jobs. Twin battery plants on the site are intended to supply Ford’s North American assembly plants with locally assembled batteries for powering next-generation electric Ford and Lincoln vehicles. Investments in the new Tennessee and Kentucky battery plants are planned to be made via BlueOvalSK, a new joint venture to be formed by Ford and SK Innovation, subject to definitive agreements, regulatory approvals and other conditions.

“This is a transformative moment where Ford will lead America’s transition to electric vehicles and usher in a new era of clean, carbon-neutral manufacturing,” said Ford Executive Chair Bill Ford. “With this investment and a spirit of innovation, we can achieve goals once thought mutually exclusive – protect our planet, build great electric vehicles Americans will love and contribute to our nation’s prosperity.”

This news comes amid strong demand for the all-new Ford F-150 Lightning truck, E-Transit and Mustang Mach-E electric vehicles, and is on top of Ford’s recent announcement to expand production capacity and add jobs at the Ford Rouge Electric Vehicle Center in Dearborn, Mich.

“This is our moment – our biggest investment ever – to help build a better future for America,” said Jim Farley, Ford president and CEO. “We are moving now to deliver breakthrough electric vehicles for the many rather than the few. It’s about creating good jobs that support American families, an ultra-efficient, carbon-neutral manufacturing system, and a growing business that delivers value for communities, dealers and shareholders.”

Ford’s $7 billion investment is the largest ever manufacturing investment at one time by any automotive manufacturer in the U.S. Part of Ford’s more-than-$30 billion investment in electric vehicles through 2025, this investment supports the company’s longer-term goal to create a sustainable American manufacturing ecosystem, and to accelerate its progress towards achieving carbon neutrality, backed by science-based targets in line with the Paris Climate Agreement. Overall, Ford expects 40% to 50% of its global vehicle volume to be fully electric by 2030.

“We are proud to be partnering with Ford as they open a new chapter in automobile history,” said Dongseob Jee, president of battery business, SK Innovation. “We are excited to be taking this decisive leap together, as partners, and to bring about our common vision for a cleaner planet. Our joint venture, BlueOvalSK, will embody this spirit of collaboration. We look forward to growing our trust-based partnership by delivering on our market-leading value proposition, experience and cutting-edge expertise.”

All-new Ford Blue Oval City
Reimagining how electric vehicles – and the batteries that power them – are designed, manufactured and recycled, Ford is creating an all-new electric vehicle manufacturing ecosystem.

Blue Oval City will be among the largest auto manufacturing campuses in U.S. history. Like the iconic Rouge complex in Michigan did a century earlier, Blue Oval City will usher in a new era for American manufacturing.

The 3,600-acre campus covering nearly 6 square miles will encompass vehicle assembly, battery production and a supplier park in a vertically integrated system that delivers cost efficiency while minimizing the carbon footprint of the manufacturing process. The assembly plant will use always-on cloud-connected technologies to drive vast improvements in quality and productivity. The mega campus is designed to add more sustainability solutions, including the potential to use local renewable energy sources such as geothermal, solar and wind power.

“West Tennessee is primed to deliver the workforce and quality of life needed to create the next great American success story with Ford Motor Company and SK Innovation,” said Tennessee Gov. Bill Lee. “This is a watershed moment for Tennesseans as we lead the future of the automotive industry and advanced manufacturing.”

Creating approximately 6,000 jobs, Blue Oval City will be a hive of technical innovation to build next-generation electric F-Series trucks. This growth opportunity will allow Ford to reach new customers with an expanded electric truck lineup.

“Blue Oval City’s assembly plant will harness Ford’s global manufacturing expertise and cutting- edge technologies to deliver cost efficiencies and the quality that our customers expect,” said Kumar Galhotra, Ford president, Americas & International Markets Group. “This will enable Ford to lead in the race to bring dependable, affordable and advanced electric vehicles to even more Americans.”

Bigger assembly plant, smaller environmental impact
Despite its size, the assembly plant at Blue Oval City is designed to have as minimal an impact as possible on the surrounding environment – and even to generate positive impacts. The assembly plant’s goal is to have a regenerative impact on the local environment through biomimicry in design of the facility. From the start of production in 2025, Ford’s goal is for the assembly plant to be carbon neutral.

Through an on-site wastewater treatment plant, the assembly plant aspires to make zero freshwater withdrawals for assembly processes by incorporating water reuse and recycling systems. Zero-waste-to-landfill processes will capture materials and production scrap at an on-site materials collection center to sort and route materials for recycling or processing either at the plant or at off-site facilities once the plant is operational.

Ford is collaborating with Redwood Materials, a leading battery materials company, to make electric vehicles more sustainable and affordable for Americans by localizing the supply chain network, creating recycling options for scrap and end-of-life vehicles, and ramping up lithium-ion recycling. Ford believes battery recycling is essential for the success of an electrified future and has the potential to offer significant economic benefits as well as help solve for end-of-life battery recycling.

BlueOvalSK Battery Park
Joining the Ford electric manufacturing revolution is a planned $5.8 billion, 1,500-acre BlueOvalSK battery manufacturing campus in Glendale, Ky., which is targeted to open in 2025.

Twin co-located plants will be capable of producing up to 43 gigawatt hours each for a total of 86 gigawatt hours annually. Together, these American-made batteries will power next- generation electric Ford and Lincoln vehicles.

Bringing 5,000 new jobs to Kentucky, BlueOvalSK Battery Park will be centrally located to support Ford’s North American assembly plants’ footprint.

“We thank Ford Motor Company and SK Innovation for their investment in Team Kentucky,” said Kentucky Gov. Andy Beshear. “This is the single largest investment in the history of our state and this project solidifies our leadership role in the future of the automotive manufacturing industry. It will transform our economy, creating a better Kentucky, with more opportunities, for our families for generations. Our economy is on fire – or maybe it’s electric. Our time is now. Our future is now.”

Technician investments in Texas and the U.S.
Ford is investing $90 million in Texas alone as part of a $525 million total investment across the U.S. during the next five years to transform America’s auto technician industry. The investment will go toward job training and career readiness initiatives for the current and next generation of technicians. These programs aim to develop highly skilled technicians and will support Ford’s growing portfolio of connected electric vehicles.

# # #​

About Ford Motor Company
Ford Motor Company (NYSE: F) is a global company based in Dearborn, Michigan, that is committed to helping build a better world, where every person is free to move and pursue their dreams. The company’s Ford+ plan for growth and value creation combines existing strengths, new capabilities and always-on relationships with customers to enrich experiences for and deepen the loyalty of those customers. Ford designs, manufactures, markets and services a full line of connected, increasingly electrified passenger and commercial vehicles: Ford trucks, utility vehicles, vans and cars, and Lincoln luxury vehicles. The company is pursuing leadership positions in electrification, connected vehicle services and mobility solutions, including self-driving technology, and provides financial services through Ford Motor Credit Company. Ford employs about 182,000 people worldwide. More information about the company, its products and Ford Motor Credit Company is available at corporate.ford.com.

About SK Innovation & Battery Business
Established as South Korea’s first oil refining company in 1962, SK Innovation engages in diverse areas of business, including exploration and production (E&P), batteries, and information and electronics materials. It owns SK Energy, South Korea’s No. 1 refining company; SK Global Chemical, the leader in the domestic petrochemical industry; SK Lubricants, a global lubricants company; SK Incheon Petrochem, a refining and chemical company; SK Trading International, a trader of crude oils and petrochemicals; and SK IE Technology, a global information and electronic material solution company. SK Innovation will split off its battery business on October 1 as a wholly owned subsidiary to accelerate business growth and promote corporate value. As part of their management system, SK Innovation pursues the maximization of happiness for all stakeholders. It is for this reason that SK Innovation recognizes the importance of and pays attention to social enterprise, a way to create social values through business.

For news releases, related materials and high-resolution photos and video, visit www.media.ford.com.

Contact(s):
Equity Investment Community:
Lynn Antipas Tyson 914.485.1150 [email protected]
Fixed Income Investment Community: Karen Rocoff 313.621.0965 [email protected]
Shareholder Inquiries:
1.800.555.5259 or 313.845.8540 [email protected]
Media:
Ford Media Center
[email protected]

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[Razorbak86]

Ford goes all-in on electric vehicles with massive multibillion-dollar investment

Phoebe Wall Howard, Detroit Free Press, 9/27/21

Ford Motor Co. on Monday night announced a historic investment in its future that will pump more than $11 billion into manufacturing a strong, dependable supply of essential parts for electric vehicles, creating nearly 11,000 jobs along the way.

This commitment — the single biggest investment in the history of the 118-year-old automaker — will pay for a new assembly plant to build all-electric F-Series trucks and three battery plants. It establishes Ford as a contender in a transportation battle that's evolving in real time as automakers pivot from the internal combustion engine to battery-operated vehicles.

Ford had already announced an investment over the past two years of $950 million in the Rouge Complex in Dearborn to build the all-electric 2022 F-150 Lightning.

Bringing the battery supply chain to the U.S. insulates Ford from being held hostage by battery shortages the way the industry has been kneecapped by the global semiconductor chip shortage.

Two battery plants will be built in Glendale, Kentucky. A battery plant and the truck assembly plant will be built in Stanton, Tennessee. It all pencils out to 5,000 jobs in Kentucky and 5,800 jobs in Tennessee.

This also establishes a clear path to zero-emission vehicles for Ford in North America.

Eyes on China
The investment includes $7 billion from Ford and about $4.4 billion from its joint venture with battery partner SK Innovation of South Korea, Ford said.

Where batteries are made, and where they're shipped, will be key to automakers' strength in coming years. China is positioned to be a superpower. Companies in the U.S. want a secure, local supply chain. General Motors has also taken steps in this direction, as have other competitors in the industry.

"This is a really important strategic bet to insource these key components. It won’t be the last," Ford CEO Jim Farley said during an interview Monday.

Farley has been making a come-from-behind push on electrification since stepping into the top job at the company on Oct. 1.

Sold out already
Now he feels the company is positioned to truly compete in the all-electric arena.

"Are we ahead or behind? This announcement puts us ahead. We already have sold out of our first generation of electric vehicles and we’re dealing with that capacity issue now," Farley told the Free Press.

These new plants will produce perhaps twice as much per year as all the batteries made in the U.S. for automotive use at 129 gigawatts, Farley said.

"It's a million units of batteries — annual," he said. "It's a million vehicles' worth of batteries we're announcing this week."

With projects in Tennessee and Kentucky, combined with existing SK Innovation supplies made at a plant in Georgia, Ford now will be able to obtain the 140 gigawatts of battery capacity it has talked about having in five years, Farley said. "So, it’s happening at Ford. Our vehicles are sold out. And three to four years from now, with all this capacity, we'll have more than a million units of batteries on our hands.... This puts us on the map as a leader."

Includes recycling
These are not all the batteries that Ford will need for all electric vehicles in North America, but it's a start, he said.

The company released this punch list:

• Ford is planning to build a 3,600-acre megacampus in west Tennessee called Blue Oval City, designed to be the largest, most efficient factory in Ford history. It will include an assembly plant, battery production and supplier park. Inside the plant, "zero-waste-to-landfill" processes will capture materials and production scrap at an on-site materials collection center to sort and route materials for recycling or processing either at the plant or off-site.
• The assembly plant at Blue Oval City is designed to achieve a vision of carbon neutrality and meet the company's air emission goals to have a regenerative impact on the local environment through "biomimicry in design of the plant facility."
• In central Kentucky, Ford will build BlueOvalSK Battery Park, consisting of twin battery plants that will power a new lineup of Ford and Lincoln vehicles coming to market later this decade. Production of advanced lithium-ion batteries will begin in 2025.

Ford will begin groundbreaking later this year, Lisa Drake, Ford chief operating officer for North America, said in an interview with the Free Press.

Production is targeted to begin in 2025 at both sites in Tennessee and one site in Kentucky, with the second battery cell facility in Kentucky launching in 2026.

Recycling will be part of the whole operation too, she said.

"This will be the initial capacity that we install as we march towards our 40% EV penetration in 2030," Drake said.

The 3,600-acre site in west Tennessee is three times the size of the Rouge, she noted. And there's room to expand.

"One battery cell plant consumes the energy five times that of Kentucky Truck" in Louisville, she said. "Requirements to build these types of properties are pretty substantial."

They couldn't be near earthquake or hurricane zones. They needed to be near highways and railways. Being close to aquifers creates potential to heat and cool portions of the operation efficiently, Drake said.

In addition, officials in Tennessee have set up a fund to pay for vocational training and develop curriculums that teach the skills needed in the workforce, she said.

Tennessee officials said Ford’s return to the state is special because of its history.

"Back in 1913, Ford produced wooden wheels and body foundations for Model T Fords in Memphis,” said Beverly Robertson, CEO of the Greater Memphis Chamber, in a statement. “They're returning to transform the Memphis market and make eco-friendly, carbon-neutral manufacturing the gold standard of the automotive industry."

Ford opened a Model T assembly plant in Memphis, relocated to a new facility in South Memphis in 1924, and then relocated to Ohio in 1958.

Ted Townsend, chief economic development officer of the Greater Memphis Chamber, said the Ford project is “deeply personal” to him.

“Back in 1958, Ford relocated its South Memphis plant to Ohio and my grandfather was unable to relocate," he said. "Now, 63 years later, I get to be on the team that brought Ford back. It makes this win that much sweeter.”

From Model T to all-electric
With two Ford plants in Louisville, Kentucky's Gov. Andy Beshear knows Ford well and worked to close this deal. He told the Free Press on Monday that the project involves a $250 million forgivable loan, which requires the automaker to meet its projections for investment and jobs.

"This is a variation of our normal incentive package," Beshear said. "They’ll be able to draw on this loan over a period of about 20 years. It’ll include conveyance of the land that is the megasite. It’s 1,500 acres off I-65, just about 40 minutes south of Louisville. And the last piece is about $36 million in training."

The state's 100-year relationship with Ford has included everything from Model T production to building U.S. Army vehicles for World War II, the governor said.

"The most important piece of an automobile moving forward is going to be that battery," Beshear said. "We will never be a flyover state again. Kentucky is going to be talked about in every boardroom in America. It is a landmark moment. ... We're humbled that Ford chose us. This isn't just transformational for Kentucky, it's transformational for Ford. These investments are bets they're making on the future. They're entrusting us with their future. It is an incredible vote of confidence. We're not going to let them down."

Beshear said his granddaddy worked in his late teens and early 20s at a Ford plant in Michigan before becoming a Baptist minister. These days, family loyalty continues.

"I'm a proud driver of Ford vehicles," Beshear said. "In fact, when I ran for attorney general, which was my first elected job, I drove my hybrid Escape around the state putting 200,000 miles on it. It has never let me down."

All of this investment is meant to support global operations.

In addition to recent investments in Michigan from Ford, the company said in recent days it will work with Redwood Materials on a "closed loop domestic supply chain," increasing the production of the upcoming F-150 Lightning truck to 80,000 trucks annually in Dearborn.

$525M nationally in training money
Ford is also investing $90 million in Texas alone and $525 million nationally over the next five years on auto technician training as vehicle technology continues to improve.

While the new truck assembly plant will be a Ford facility, the three battery plants will be joint ventures with SK Innovation and subject to organizing by the UAW. Employees will have the ability to choose whether to unionize and Ford officials said they support their right to that choice.

“We commend Ford for investing in the U.S., resulting in the creation of thousands of good middle-class jobs. The UAW is eager to work with Ford to continue to assure the culture of manufacturing high quality vehicles and components for their customers,” said UAW Vice President Chuck Browning, head of the union’s Ford department, in a statement.

Volkswagen has a strong presence in Chattanooga, Tennessee, where it has all-electric cars and batteries in pilot production now. The German company has invested more than $800 million in plant expansion.

Tesla on the horizon
Ford has been watching its U.S. competitor Tesla carefully, acknowledging its leadership in the all-electric manufacturing space — and realizing Ford must do all it can to step up its game now.

“There is a very healthy sense of urgency in the company. The tension and the sense of urgency is from a competitive environment. It’s kind of undeniable," Farley told the Free Press. "Tesla made a billion dollars, a billion dollars in the second quarter. ... They were very profitable in the vehicle business. And, as well, the battery-electric business in Europe is like 12% of the market. It’s going really fast."

'Totally clean sheet'
Longtime industry observer John McElroy, host of "Autoline After Hours" podcast and webcast, said Monday, "Ford is going all-in on electrics. Instead of taking existing models and modifying them to be electric, it's going total clean sheet."

Efficiency created by these huge investments will pay off immediately, he said.

"This is absolutely Farley doing it. He's leading the charge," McElroy said. "As recently as two years ago, there was a lot of skepticism on whether electric vehicles would ever catch on. Fast forward to today, and it's obviously come on very strong. This is a decision General Motors made several years ago. It's catchup for Ford, but still early days. They're not way behind."

Flying without a net
And while President Joe Biden and members of Congress have been highly engaged in developing an infrastructure plan, this business investment is not dependent on federal policy in Washington, Drake said.

"I would say that collaboration certainly helps," she said during a media briefing. "It makes this acceleration much easier. Our plan is not built on one administration's policies or another. Our plan is our vision and our plan. But certainly we would like to see help on consumer adoption. It's always helpful to have incentive packages. But, again, this is our vision and our strategy and we're not reliant on anything coming out of Washington to deliver it."

Staff writer Mark Phelan contributed to this report. Contact Phoebe Wall Howard at313-618-1034 or[email protected].Follow her on Twitter@phoebesaid. Read more on Ford and sign up for our autos newsletter.

 

[BandofEskimoBrothers]

Pretty smart move with the Battery plant. Bringing the supply chain in house instead of relying on China.

 

[vrtical]

West TN is becoming the new tech hub. Great to see Ford come to TN.

 

[Razorbak86]

Pretty smart move with the Battery plant. Bringing the supply chain in house instead of relying on China.

3 battery plants and one electric F-Series assembly plant… 4 plants in total.

 

[BamaBronc]

The best thing they did here was to not base their plan on what the current administration or any future administration says or does. Companies need to divest themselves from the up and downs of the Fed. Gov. and their policies. Private industry should drive tech. advancement. From the article, it's Tesla making a billion dollars that moved the needle for Ford. Once again, capitalism works...and works for everyone.

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