Ford and South Korean battery maker SK On have announced the dissolution of their $11.4 billion U.S. battery manufacturing joint venture, BlueOval SK. Despite the partnership ending, the ambitious plans for EV battery factories in Kentucky and Tennessee will proceed, with each company taking independent ownership and operational control of specific sites. This strategic shift comes four years after the initial agreement to spend billions to build these facilities, intended to produce batteries for Ford's next-generation electric F-Series trucks.
SK On, a subsidiary of SK Innovation, confirmed Thursday that an agreement was reached with Ford to terminate the joint venture. Under the new arrangement, Ford will assume full ownership and operation of the two battery plants located in Kentucky. Meanwhile, SK On will take charge of the factory situated within the expansive BlueOval SK campus in Tennessee.
SK On intends to maintain a strategic partnership with Ford, specifically centered around the Tennessee plant, according to Bloomberg. When asked for comment, a Ford spokesperson informed TechCrunch that the company was aware of SK On's disclosure but had no further information to share at this time.
The original joint venture was established during a period of significant investment in electric vehicle production, with billions poured into scaling up manufacturing. However, while EV sales have increased in recent years, they haven't matched the industry's optimistic projections. Factors such as the expiration of federal EV tax credits have also contributed to a slowdown in sales pace, likely influencing the decision to restructure the partnership.
