Overview
- Under the agreement, Ford will take full ownership of the two Kentucky battery plants, while SK On will own and operate the Tennessee facility.
- The separation is targeted to close by the first quarter of 2026, pending regulatory approvals and other closing conditions.
- SK On plans to supply Ford and additional customers from Tennessee and to produce energy storage system batteries there, with the production start timing described as flexible during the transition.
- Launched in 2022 with about $11.4 billion for three plants aiming at roughly 120 GWh annually, BlueOval SK has only one Kentucky site operating as the Tennessee and second Kentucky plants remain delayed.
- SK On says the restructuring will cut debt and fixed costs and could lift its standalone U.S. capacity to about 67 GWh, while Ford shifts toward lower-cost LFP cells and a recalibrated EV rollout.