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.
- SK On says the Tennessee plant will supply Ford and other customers and support expansion into energy storage systems, with the production start timeline remaining flexible during the transition.
- The dissolution follows softer EV demand and shifting U.S. policy incentives, and SK On frames the move as a bid to improve profitability by cutting debt and fixed costs.
- The deal is slated to close in the first quarter of 2026 pending regulatory approvals, and both companies say employee matters will be addressed as part of the transition while Ford offers limited public comment.
- The original joint venture involved about $11.4 billion for three plants targeting roughly 120 GWh of annual capacity, and the split raises questions about the previously approved $9.6 billion federal loan to BlueOval SK.