Ford and SK On are ending their U.S. battery joint venture

In a significant development for the electric vehicle industry, Ford has announced the termination of its joint venture with South Korean battery manufacturer SK On. This partnership, formed four years ago with a hefty investment of $11.4 billion, aimed to establish battery production facilities in Tennessee and Kentucky, specifically for the upcoming electric F-Series trucks. While the factories themselves remain operational, the joint venture will officially conclude. Under the new agreement, Ford will assume full ownership and management of the two battery plants located in Kentucky. Conversely, SK On will take charge of the facility situated within the expansive BlueOval SK campus in Tennessee. Despite the dissolution of their joint venture, SK On has indicated its intention to sustain a strategic partnership with Ford, particularly focusing on the Tennessee plant. A spokesperson for Ford acknowledged awareness of SK On's announcement but refrained from providing additional comments at this stage. This joint venture was conceived during a time when the automotive sector was pouring billions into electric vehicle production. Although sales of electric vehicles have seen an upward trend in recent years, actual demand has lagged behind the ambitious forecasts set by the industry. Additionally, the recent cessation of the federal EV tax credit has further slowed the momentum of electric vehicle sales.