Back in July, Ford Authority reported that SK Innovation – the battery supplier for the 2022 Ford F-150 Lightning – was mulling the idea of increasing its production and spinning off its battery division as a way to raise additional funds for expansion. Last month, the company announced that it was moving forward with those plans and that the SK Innovation spinoff would be called SK Battery. Now, the SK Innovation spinoff has officially been approved by the company’s shareholders, according to Reuters.
“It’s crucial to secure timely financial resources for further quantitative and qualitative expansions in the future,” SK Innovation CEO Kim Jun told shareholders. “With the split-off of the battery business, we plan to evaluate various ways to secure resources, such as establishing joint ventures, partnerships, and attracting strategic and financial investors.”
SK Battery Co Ltd, as it’s officially known, will launch on October 1st, but Jun declined to elaborate on rumors that the company was already aiming to go public as soon as next year. However, Jun did say that he expects SK Battery to turn a profit in 2022. Spinning off its battery business will make it easier for SK to raise funds for its planned production expansion as it aims to increase output from its current rate of 40GWh to 200 GWh by 2025 and 500 GWh by 2030.
In addition to producing batteries for the 2022 F-150 Lighting, SK and Ford recently announced that the two companies intend to form a battery production joint venture called BlueOvalSK, which will develop and produce battery cells at scale for use in future electric vehicles. Two plants are currently planned for North America, though the joint venture also intends to expand into Europe as well, as Ford Authority recently reported.