As EV demands slow, Ford and SK On agree to dissolve their landmark BlueOval SK battery venture, reshaping US battery ownership and Ford’s electrification roadmap.
Ford Motor Company and South Korea’s SK On have agreed to dissolve their electric vehicle battery joint venture, BlueOval SK, marking a major shift in Ford’s US electrification strategy.
The two companies confirmed they will split ownership of the three battery plants planned initially under the partnership. A Ford subsidiary will take full control of the two Kentucky facilities, while SK On will own and operate the Tennessee plant independently. The decision is subject to regulatory approvals and is expected to be completed in the first quarter of 2026.
BlueOval SK was formed in 2021 as part of a $11.4 billion investment programme, which Ford described at the time as the most significant manufacturing commitment in its history. The project aimed to secure a domestic battery supply for Ford’s next-generation electric vehicles.
Despite the dissolution, SK On said it would continue supplying batteries to Ford and would retain the Tennessee site as a long-term manufacturing hub in the US. The company added that it plans to serve a broader customer base from the facility, including energy storage system providers, as it prioritises profitability and operational flexibility.
Ford’s decision reflects slower-than-expected growth in EV demand. The carmaker no longer requires the initially planned battery capacity, following weaker EV sales and the expiration of the US federal EV tax credit. Production at the Kentucky battery park has already been delayed to 2026 as Ford shifts focus towards hybrids.
The BlueOval SK plants were supported by a $9.6 billion loan from the US Department of Energy, finalised in late 2024, the largest loan issued under the Advanced Technology Vehicles Manufacturing programme.
Ford continues to incur heavy losses in its EV business. Its Model e division lost billions of dollars over the past two years and remains in the red in 2025.
However, the company has reiterated its long-term commitment to electrification, announcing fresh investments this year, including funding for a lower-cost electric pickup.
