DETROIT -Ford Motor Co and South Korean battery maker SK Innovation on Thursday announced they will form a battery joint venture in North America to support the No. 2 U.S. automaker's electric vehicle rollout.

The companies said they have signed a memorandum of understanding (MOU) for the formation of the venture, called BlueOvalSK. Reuters on Wednesday reported plans for the joint venture.

The plan is for the partnership to produce about 60 gigawatt-hours (GWh) annually in traction battery cells and array modules, starting mid-decade, with potential to expand, the companies said.

"This MOU is just the start; it's a key part of our plan to vertically integrate key capabilities that will differentiate Ford far into the future," Ford Chief Executive Jim Farley said in a statement.

SK Innovation CEO Kim Jun added: "Our JV with Ford will play a pivotal role in fleshing out the electric vehicle value chain in the United States, a key objective of the current U.S. administration."

  - Reuters