Ford Motor and South Korean battery maker SK Innovation are set to launch a battery three way partnership in the US to help the ramp-up of the No. 2 U.S. automaker’s electrical car rollout, two individuals acquainted with the matter mentioned.

The deal might ultimately embody a collectively owned plant to make battery cells to be used in rechargeable EV batteries, the sources mentioned.

A memorandum of understanding in regards to the three way partnership will likely be introduced on Thursday, the sources, who requested to not be recognized, advised Reuters. Ford has scheduled “an replace on Ford batteries” for Thursday at 9 a.m. ET.

Ford declined to remark aside from to say SK is a valued provider. SK Innovation mentioned in a press release it doesn’t touch upon particular initiatives for causes of consumer confidentiality.

Talks across the JV picked up velocity final month after SK Innovation agreed to pay $1.8 billion to LG Power Resolution to settle LG’s accusations of commerce theft by its Korean rival, one of many sources mentioned.

The dispute, which the administration of U.S. President Joe Biden had been on the verge of settling with a ruling, had put SK Innovation’s battery cell plant in Georgia in danger. That plant, which is underneath building, will serve Ford and Germany’s Volkswagen Group.

Biden on Tuesday known as for presidency grants for brand spanking new battery manufacturing amenities as a part of a $174 billion EV proposal throughout a go to to a Ford EV plant in Michigan. He additionally referenced his administration’s function in brokering the settlement between SK and LG Chem.

SK Innovation is anticipated to finish the Georgia plant’s building later this yr, and is constructing a second facility subsequent door that’s anticipated to start out battery manufacturing in 2023. The corporate has invested $2.6 billion in Georgia.

SK Innovation, with battery manufacturing websites within the U.S., Hungary, China and South Korea, has an annual capability of about 40 gigawatt-hours (GWh) of batteries. It goals to ramp as much as an annual capability of about 125 GWh of batteries in 2025, which might energy about 1.8 million EVs.

A take care of SK might have Ford taking an identical path as rival Common Motors, which has a battery JV with LG Power that’s constructing crops in Ohio and Tennessee.

Ford is pushing to impress key fashions in its lineup, together with the Transit van late this yr and F-150 pickup mid-2022, and already sells the all-electric Mustang Mach-E crossover. It has mentioned it is going to make investments $22 billion in electrification by means of 2025.

The automaker has repeatedly stepped up efforts round batteries, with CEO Jim Farley stating a number of occasions the automaker was taking a look at making its personal batteries. Final month, after Ford reported quarterly outcomes, he mentioned issues have modified because the automaker has boosted its EV volumes.

“We have completely entered a special zone … so we have already made the choice to vertically combine the corporate,” he mentioned on a convention name with analysts.

“We’re now constructing motors, e-axles now, we have been writing our personal battery administration software program for fairly a while, and now it is time for us to lock in on the most recent know-how and to have a safe cell manufacturing relationship.”

Whereas saying Ford had no information to announce, Farley added, “To be aggressive on this business, a significant model like Ford should vertically combine all over the system.”