SK Innovation Company, a branch of the SK Group, will invest $4.3 billion of a combined $11.4 billion in partnership with Ford Motor to build electric vehicle battery factories as well as an assembly plant for electric pickup trucks within the United States. The partnership announcement comes after President Biden’s call for companies to onshore supply chains amid a global shortage of semiconductor chips that has disrupted several industries, including the automotive industry. 

The SK-Ford partnership is expected to be similar to the LG Energy/General Motors Co. collaboration with the two jointly building battery factories in Ohio and Tennessee. The plans include twin lithium-ion battery plants, which will be built in central Kentucky, and a 3,600-acre campus in west Tennessee. The campus will include an additional battery plant along with a recycling center, a supplier park and a new assembly plant for electric F-series trucks, according to Ford CEO Jim Farley. 

Ford announced on Monday that the plants will power new Ford and Lincoln electric vehicles and will create around 11,000 jobs. According to SK Innovation, the annual production of the battery plants will be 129 gigawatt-hours or more than 1 million batteries per year. 

SK Innovation has largely focused on mid-size batteries over the past 40 years and has taken a lead in the development of high-density batteries that allow vehicles to travel further on a single charge as well as nickel-cobalt-manganese batteries that increase energy storage and efficiency. Batteries created by SK have supplied around 2.5 million electric vehicles around the globe, according to a spokesperson, and have a fire-free safety record. 

The partnership between the two companies highlights the efforts in repairing the weakened U.S. supply chain in the automotive industry as well as the efforts to increase the development and production of electric vehicles, including batteries.