BUSINESS

SK On: 5 things to know about Ford's partner on Blue Oval City project

Omer Yusuf
Memphis Commercial Appeal

As SK Innovation announced plans for a $5.6 billion project with Ford Motor Co. in Haywood County in September, the South Korean company was undergoing significant change.

SK Innovation was then separating its electric vehicle battery unit into a new company, SK On. That change occurred in October.  

SK On will operate an EV battery plant within Blue Oval City, the Haywood County project’s name, to supply batteries for Ford’s all-electric F-150 Lightning trucks. The Ford electric trucks will be produced in a separate assembly plant in Blue Oval City. 

Blue Oval City is expected to create 5,800 new jobs with construction scheduled for later this year.

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South Korean company SK On invested nearly $2.6 billion to create two electric vehicle battery plants in Commerce, Georgia. An aerial shot of shows these two plants. SK On is partnering with Ford to create Blue Oval City in Haywood County.

Here are five things to know about SK On, one-half of the partnership behind Tennessee’s single-largest economic development investment in state history.  

What is SK On?

SK On is a South Korean-based company in its first full year as a separate EV battery maker.

SK On’s long-term vision is to establish itself as a major global EV battery producer. The company was fifth in EV battery global market share in 2021, according to reporting by the Korea Herald.

SK On CEO Jee Dong-seob discussed the company’s vision in a February interview with SKinno News, the company’s inhouse newsroom. Dong-seob was appointed SK On CEO after the new company was created. 

“When SK On develops our dynamic force for the virtuous cycle of growth internally and (fosters) the growth potential externally, I believe becoming the global No. 1 is not a distant dream, but a ‘future in ready,’” Dong-seob said.

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The South Korean company hopes to accomplish that goal by establishing its own EV battery plants and partnering with global automotive companies, like Ford.

How long has SK On been producing EV batteries?

SK On has developed and mass-produced lithium-ion batteries since 1996. SK On developed its first EV battery in 2005. 

The first time SK On mass-produced its EV battery cells was in 2009 with the Mitsubishi Fuso E-Canter hybrid vehicle, SK On Head of Corporate Strategy Yoosuk Kim said in an emailed response to The Commercial Appeal. In 2010, SK On mass-produced battery cells for its first all-electric vehicle program, the Hyundai BlueOn.

Once EV battery plants in Tennessee and Kentucky begin mass production in a few years, the U.S. will represent SK On’s lion share of global production capability at nearly 150 GWh (Gigawatt Hours), Kim said.

Yoosuk Kim is SK On's head of corporate strategy.

“This is enough capacity to supply more than 1.3 million EVs per year, which represents a significant step toward reaching U.S. emissions reduction goals,” Kim said.

Where else does SK On have a presence?

SK On currently operates plants in South Korea, the U.S., China and Hungary. SK On began production at its first of two EV battery plants in Commerce, Georgia, near Atlanta in early 2022.

SK On's electric vehicle battery plant in Commerce, Georgia, started production in January. SK On, a South Korean company, is a separate EV unit from SK Innovation. SK On is working with Ford on the Blue Oval City project in Haywood County.

The company plans to open the second Georgia plant in 2023. In addition to Blue Oval City, Ford and SK On plan to invest $5.8 billion for multiple battery factories in Kentucky. Production in the Kentucky and Tennessee plants is scheduled to begin in 2025.

In addition to the U.S., SK On also plans to begin production at battery plants in China, Hungary and Turkey in the coming years, according to the company’s website.  

What is the difference between SK On, SK Innovation and SK Group?

SK On is a separate EV battery maker unit from SK Innovation.

SK Innovation is South Korea’s largest energy and chemical company that until October included EV battery production.

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SK Group, founded in 1953 and headquartered in Seoul, South Korea, is the country’s third-largest conglomerate with 125 companies — including SK Innovation and SK On. SK Innovation is one of SK Group’s largest operating companies.

SK Group’s companies are focused in four primary areas: semiconductors, telecommunications, energy and life sciences. SK Group was ranked No.129 on the 2021 Fortune Global 500 list.

Land prepping began this week at Ford Motor Co. and SK On’s $5.6 billion Blue Oval City project in Stanton. Construction on Blue Oval City is expected to begin later this year, according to Ford officials.

How many employees does SK Group have?

SK Group employs more than 100,000 people globally with a combined annual revenue of $106 billion, according to the company.

There are more than 4,000 employees currently based in the U.S., according to SK Group. SK Group hopes to eventually establish an American company, Kim said.

Of those 4,000 employees, 1,300 are employed at the Commerce plant. SK On expects to have 3,000 employees at the Georgia site once the second plant opens in 2023, according to an SK Group U.S. communications spokesperson.

Omer Yusuf covers the Ford project in Haywood County, residential real estate, tourism and banking for The Commercial Appeal. He can be reached via email Omer.Yusuf@commercialappeal.com or followed on Twitter @OmerAYusuf.