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Fewer EVs Need Fewer Batteries: Ford and SK On End Their Joint Venture
Ford and SK On will independently operate U.S. battery plants after ending their joint venture to improve efficiency amid EV market challenges, after investing $11.4 billion.
- On Thursday, Ford Motor Co. and SK On agreed to end their three-year BlueOval SK joint venture, with a Ford subsidiary owning Kentucky plants and SK On operating the Tennessee plant.
- Amid weaker EV demand and policy shifts, SK On is pivoting toward energy storage systems as it faces mounting losses, including a $84.72 million operating loss recently, and broader EV headwinds linked to U.S. regulatory changes and EV demand.
- Nearly $11.4 billion was invested in the venture to build the Kentucky and Tennessee plants, projected to create 11,000 jobs and 60 GWh annual output, with battery production begun at the Kentucky plant for the F-150 Lightning.
- Subject to customary approvals, the agreement is expected to complete in the first quarter of next year, with SK On saying `The production start schedule for the Tennessee plant remains flexible at this time, as it is related to the ownership transition`.
- The breakup highlights challenges in Ford Motor Co.'s EV strategy as adoption lags, underscoring yearslong losses and postponed F-150 Lightning plans amid a broader industry reset toward energy storage systems.
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24 Articles
24 Articles
Coverage Details
Total News Sources24
Leaning Left4Leaning Right2Center12Last UpdatedBias Distribution67% Center
Bias Distribution
- 67% of the sources are Center
67% Center
L 22%
C 67%
11%
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