Ford (F) Stock Soars on $11.4 Billion EV Partnership with Battery Maker SK Innovation (SKOVF)

September 28, 2021 4:12 AM EDT

Get inside Wall Street with StreetInsider Premium. Claim your 1-week free trial here.

Shares of Ford Motor Company (NYSE: F) are up 4.5% in pre-open Tuesday after the company announced it will partner with SK Innovation (OTC: SKOVF) to accelerate its electric vehicle (EV) push.

Two companies committed to spending $11.4 billion to build an electric F-150 assembly plant, in addition to three battery plants in the United States. As a result, Ford has increased its expectations to now see all-electric cars consisting 40% to 50% of its global volume by 2030, from the prior 40%.

“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,” said Ford Executive Chair Bill Ford.

This represents the single-largest investment by Ford in its entire history. New plants will create about 11,000 jobs and will be located in Tennessee and Kentucky with new facilities expected to be operational in 2025.

Ford will invest $7 billion while the South Korean battery maker SK Innovation will participate with $4.4 billion.

“We are proud to be partnering with Ford as they open a new chapter in automobile history. 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,” added Dongseob Jee, president of battery business, SK Innovation.

Earlier this month, Ford committed to ramp up F-150 Lightning production capacity to 80,000 per year on the back of robust demand for the electric pickup truck. The car is expected to go on sale next spring.

Shares of SK Innovation closed 3.8% higher in Seoul today.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Corporate News, Hot Corp. News, Trader Talk

Related Entities

Pre Market Movers, F1