Aluko strikes a $601.4 million deal with Blue Oval SK for EV battery components

Aluko, a company specialising in aluminium parts and materials, is significantly moving into the U.S. electric vehicle battery market. The company has recently signed a contract with Blue Oval SK LLC and will supply the module case protect frame, a crucial component for electric vehicle batteries, valued at $601.4 million (approximately 800 billion won).

"The electric vehicle battery module case protect frame manufactured by Alumaterials America, which is established in the U.S., can be produced locally in the U.S. one-stop from extrusion production of aluminum to processing and assembly. It is expected to benefit from being recognised as an item that satisfies the production tax credit (AMPC) standard under the U.S. Inflation Reduction Act (IRA)," said an Aluko official.

About the agreement

This agreement spans five years, from 2026 to 2030, and the recipient of this supply will be Blue Oval SK LLC, facilitated through Aluko's subsidiary, Alu Materials America Inc. Blue Oval SK LLC is a local U.S. corporation that is jointly invested in by SK On and Ford Motor Company of the United States.

This contract represents a significant milestone for Aluko Group, as it marks their supply contract for material parts related to electric vehicle batteries reaching a total of $1.16 billion (approximately 1.55 trillion won). The company intends to disclose such important information through the investment disclosures of its subsidiary corporations.

Aluko's strategic expansion into the electric vehicle market

This move highlights Aluko's strategic expansion into the electric vehicle market and its ambition to become a key parts supplier to global automakers in the foreseeable future. On March 25, the company announced the acquisition of a 100 per cent stake in Alumaterials Inc., aiming to leverage the benefits of the U.S. Inflation Reduction Act (IRA).

The module case protects the frame, a critical structural component safeguarding cells within electric vehicle batteries, and is this development's focal point. Aluko's subsidiary, Alumaterials America, has recently managed to avoid measures that would have imposed anti-dumping tariffs on extruded products in the United States. This achievement paves the way for a secure and stable supply of electric vehicle battery parts within the U.S. market.

This acquisition and the successful avoidance of anti-dumping tariffs position Aluko favourably to meet the increasing demand for electric vehicle components in the United States. By strengthening its presence and capabilities in this sector, the company is strategically aligning itself for future growth and market leadership.

"Based on the aluminum ultra-precise extrusion technology and cutting-edge industrial parts manufacturing know-how, we will further expand our business areas of various electric vehicle parts, including electric vehicle battery module case protect frames, and solar power module frames to grow into a global aluminum material parts company,” added the Aluko official.

Aluko's partnership with LG

Aluko has recently signed a significant contract with LG Energy Solution to supply end plates, a crucial component in safeguarding battery cells and modules. The end plate plays a pivotal role in minimising battery deformation and is a primary protective layer against fire and explosions within electric vehicle batteries.

This latest agreement underscores Aluko's commitment to accelerating its order expansion in the electric vehicle market. The company's reputation is bolstered by its cutting-edge facilities in Korea, the United States, Vietnam, India, and Hungary. These state-of-the-art facilities enable Aluko to mass-produce industrial high-tech parts, including solar power module frames and components essential for electric vehicle battery module cases.

Through this strategic partnership with LG Energy Solution and its robust manufacturing capabilities across multiple countries, Aluko is well-positioned to meet the increasing demand for critical components in the rapidly growing electric vehicle industry. This move further solidifies Aluko's position as a leading supplier of advanced materials for the electric vehicle and renewable energy sectors.