The venture, which will be called BlueOvalSK, will produce around 60 gigawatt hours (GWh) a year with scope for expansion by the middle of the decade.

SKI already supplies batteries from South Korea for Ford’s Mustang Mach-E SUV and a facility is under construction in Commerce, Georgia. This plant will supply both VW and Ford, who will use it for the new F-150 Lightning electric pick-up truck that is due to go into production next year at a new factory at its Rouge complex in Dearborn, MI.

However, joint manufacturing in the US ties in with a new drive in the US for local production. President Biden signed an executive order in February designed to fortify US supply chains, including for lithium batteries, and announced at Dearborn last week a $174 billion plan for US electric vehicle production.