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Ford Takes Over Kentucky Battery Plant, Cuts 1,600 Jobs as Site Shifts to Energy Storage

State officials are reviewing a $250 million incentive deal after Ford ended its SK On venture, pivoting the Glendale complex to energy storage.

Overview

  • BlueOval SK is laying off about 1,600 Glendale workers, who will receive 60 days of pay and benefits, with local and state partners coordinating reemployment support.
  • Ford says it will invest roughly $2 billion to retool Kentucky 1 for large battery energy storage systems, including LFP-based products and 5MWh-plus containerized units for data centers, utilities and industrial customers.
  • Retooling is expected to take about 18 months, with initial shipments targeted by late 2027 and a stated goal to deploy at least 20 GWh of storage annually.
  • The company projects about 2,100 jobs once the facility is converted, and laid-off employees will be able to apply for those roles, though detailed rehiring timelines and priorities remain unclear.
  • Ford has assumed BlueOval SK assets and obligations, including incentive agreements, as it pulls back on parts of its EV strategy that include a $19.5 billion impairment and the halt of F-150 Lightning production.