Ford is making waves in the electric vehicle (EV) industry by potentially becoming America’s EV battery supplier. Through its joint venture with BlueOval SK, Ford is looking to capitalize on excess battery cell capacity that would otherwise go unused. This move could position Ford as a key player in supplying batteries to other automakers and energy storage companies.
The traditional model of building and selling cars is evolving in the era of electric vehicles. With software-defined cars, after-sale subscriptions, and corporate fleets becoming more common, automakers like Ford are exploring new revenue streams. According to a report by Bloomberg, Ford’s joint venture with BlueOval SK is considering selling off excess battery capacity to generate additional revenue. This would make Ford a major player in the domestic battery supply chain.
Ford’s investment in its joint venture with SK On has led to the establishment of battery plants in Tennessee and Kentucky. With a $9.2 billion loan from the U.S. government, Ford and SK On are gearing up to produce a significant amount of batteries. However, the planned capacity of these plants exceeds Ford’s immediate needs, creating an opportunity to supply batteries to other companies.
BlueOval SK CEO Michael Adams revealed that both Ford and SK On are exploring new business opportunities beyond supplying batteries for Ford’s EVs. While the Tennessee plant is set to open in 2027, production may not ramp up as quickly as originally anticipated. Despite the slower-than-expected growth of the EV market, Ford is well-positioned to leverage its excess battery capacity.
The EV industry is facing challenges such as the phasing out of federal tax credits and tariffs impacting sales. This has led to a surplus of batteries that Ford is looking to sell to other customers. By manufacturing domestically, Ford can help other automakers avoid import tariffs and benefit from a stable supply chain.
Adams believes that there is a high likelihood of new customers purchasing battery capacity from Ford. As the demand for electric vehicles and energy storage grows, Ford’s excess battery capacity could become a valuable asset. By focusing on energy storage, Ford aims to capitalize on the growing need for batteries in the electrified world.
In conclusion, Ford’s pivot towards becoming a major EV battery supplier signifies a strategic move in the evolving automotive industry. By leveraging its excess battery capacity, Ford can establish itself as a key player in the battery supply chain, catering to the increasing demand for electric vehicles and energy storage solutions.