Ford
- Ford stock climbed as much as 5% on Tuesday after announcing plans to build new battery and EV plants.
- Ford and SK Innovation will commit $11.4 billion for three battery plants and an EV plant to build its electric F-150 Lightning.
- Ford now expects up to 50% of its global vehicle production to be electric by 2030.
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Ford stock climbed as much as 5% on Tuesday after the company ramped up its commitment to electric vehicles, with shares hitting a high of $14.84 in early morning trades.
In partnership with SK Innovation, Ford will build three new battery plants, two in Kentucky and one in Tennessee, along with a factory dedicated to building its upcoming electric F-150 Lightning truck.
The plants will have capacity to produce enough batteries for one million electric vehicles per year. SK Innovation will provide $4.4 billion in funding for the project, while Ford expects to spend $7 billion.
The plants will create thousands of jobs and be operational by 2025, according to Ford. The increased commitment to electric vehicles means Ford now expects up to 50% of its global vehicle production to be EVs by 2030. That's an increase from the company's prior forecast of 40%.
Ford's increased bet on electric vehicles is being cheered by investors, as many are looking for the next automaker that can replicate the success of Tesla. Shares of Ford are up 61% year-to-date, as of Monday's close.