Four years ago, Ford and South Korean battery maker SK On formed a joint venture, pledging to spend $11.4 billion to build factories in Tennessee and Kentucky. These factories were intended to produce batteries for the next generation of electric F-Series trucks.
While the factories themselves will continue to operate, the joint venture will not. SK On, a subsidiary of SK Innovation, announced it has reached an agreement with Ford to end the partnership. The two companies will divide the assets. Ford will take ownership and operation of the twin battery plants in Kentucky, while SK On will operate the factory at the massive BlueOval SK campus in Tennessee. SK On stated it will maintain a strategic partnership with Ford centered on the Tennessee plant.
When reached for comment, a Ford spokesperson said the company was aware of SK’s disclosure and had nothing further to share at this time.
This joint venture was created during a period when the automotive industry was investing billions to ramp up electric vehicle production. Although EV sales have risen over the past several years, demand has not kept pace with the industry’s once lofty projections. The end of the federal EV tax credit has also dampened the pace of sales.