Ford Delays US Battery Plant Layoffs Amid EV Demand Slowdown

As Ford’s largest battery venture unravels, Kentucky workers face delayed layoffs, shifting EV ambitions, and a recalibration of America’s electric future; uncertainty lingers across plants.

BlueOval SK, the electric vehicle (EV) battery joint venture between Ford Motor Co. and South Korea’s SK On, has postponed further layoffs at its Glendale, Kentucky facility in the US.

A Worker Adjustment and Retraining Notification filed with the state indicates that job cuts affecting around 10% of the remaining workforce will now begin on 31 March 2026, rather than mid-February as initially planned. Approximately 1500 workers were already scheduled for redundancy earlier this year.

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The decision follows Ford and SK On’s December 2025 agreement to dissolve the $11.4 billion partnership, citing weaker-than-expected EV demand. The Kentucky site, part of a wider plan announced in 2021 to build three large-scale battery plants in the US, began limited production in August 2025.

Ford had described the venture as its largest manufacturing commitment, but has since scaled back EV ambitions, shifting focus towards hybrid models.

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According to the filing, around three dozen of the 150 retained employees at the Kentucky plant are engineers and production supervisors. Under the dissolution terms, Ford will assume full ownership of the two Kentucky facilities, while SK On will operate the Tennessee plant located within Ford’s BlueOval City campus. SK On has stated it will continue its strategic relationship with Ford despite the restructuring.

The BlueOval SK Battery Park was originally intended to create 5000 jobs and produce advanced lithium-ion batteries for Ford’s future EVs. However, with slower market uptake, Ford has adjusted its strategy.

The company is developing a low-cost electric truck, built on its ‘Universal Electric Vehicle’ platform, scheduled for release in 2027 from its Louisville assembly plant.

The restructuring extends beyond Kentucky. SK Battery America, a subsidiary of SK On, has also filed a WARN notice in Georgia, confirming layoffs of 958 workers at its Commerce facility. Employees there will receive pay and benefits for 60 days.

Separately, Ford terminated a $6.5 billion battery supply agreement with LG Energy Solution in December, further signalling a recalibration of its EV plans.

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Shubha Mitra
Shubha Mitra
Shubha Mitra is an Assistant Editor at EFY, keenly interested in policies and developments shaping the electronics business.

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