Ford Set To Announce EV Battery Joint Venture With SK Innovation Thursday: Report

Ford Motor Co F and South Korean battery maker SK Innovation are close to announcing a battery joint venture in the United States to aid the maker of the F-150 Lightning truck boost its electric vehicle roll-out, Reuters reported Wednesday. 

What Happened: Speculation on the joint venture found more fire last month after SK Innovation agreed to pay rival LG Energy Solution $1.8 billion to settle all legal disputes relating to EV batteries in the U.S. and South Korea.

Ford and SK Innovation, a key supplier, will announce the details on Thursday, as per the Reuters report.

The development comes amid President Joe Biden calling for government aid for new battery production facilities as part of a $174 billion EV proposal during a visit to a Ford plant in Michigan on Tuesday. 

See Also: Hyundai Commits $7.4B To Make Electric Vehicles In US

SK Innovation is expected to complete the Georgia plant's construction later this year. Its second facility next door is expected to begin battery production in 2023. 

Why It Matters: Batteries are going to play a key differentiator role in the electric vehicle race. Automakers are relying on different strategies and partners to achieve similar goals — higher range and small packs at lower costs.

Tesla Inc TSLA for instance currently makes batteries in partnership with Japan's Panasonic at its $5 billion Nevada factory. It also has South Korea's LG Chem and China's CATL as suppliers for its Shanghai factory and is now reportedly in talks with China’s EVE Energy Co for a battery tie-up.

See Also: Tesla Seeks To Improve Supply Of Low-Cost Batteries In Deal With China's EVE Energy: Report

Rival General Motors Co GM has a battery joint venture with LG Energy and is building plants in Ohio and Tennessee.

Price Action: Shares of Ford closed 0.25% lower at $12.11 on Wednesday. 

Click here to check out Benzinga's EV Hub for the latest electric vehicles news.