Ford and SK On end US battery venture

According to Reuters, Ford will take full ownership of the Kentucky battery plants, while SK On will assume control of the Tennessee facility. Production will continue without interruption, the change concerns governance rather than manufacturing output.

A venture shaped by shifting EV demand

The Ford–SK On venture, established in 2022, was designed to secure domestic lithium-ion battery production for Ford’s expanding EV portfolio. The launch and strategic intent of the project were widely covered at the time by Reuters and other industry media.

In 2025, BlueOval SK began producing battery cells at its Kentucky plant — a milestone noted by Electrive and EV Infrastructure News, which highlighted the site’s role in supplying cells for the F-150 Lightning and E-Transit.

However, throughout 2024 and 2025, several outlets, including Bloomberg and Electrive, reported slower-than-expected EV adoption in the United States. The resulting supply-demand imbalance led joint-venture plants to look for additional customers and reconsider production planning. This context helps explain why Ford and SK On are now restructuring their cooperation.

Two factories, two independent paths

The division of assets is clear:

• Ford will continue developing and operating the Kentucky plants,
• SK On will focus on Tennessee and its own US expansion strategy.

Industry analysts noted in recent coverage that both parties appear to be prioritising operational agility over a fixed joint structure. In practice, production capacity remains in place, only the strategic control shifts.

Localisation remains central to US strategy

The original BlueOval SK project received substantial federal support. In late 2024, US government announcements — including statements from the Department of Energy and reported on by Reuters — detailed a multibillion-dollar loan awarded to support the construction of the Kentucky and Tennessee plants. Political leadership in Kentucky, including the governor’s office, has repeatedly emphasised the facilities’ role in strengthening the local EV battery supply chain.

This reinforces a broader industrial policy trend: localisation of critical battery and electronics manufacturing to reduce reliance on imports, particularly from Asia.

What this means for the electronics industry

A modern battery plant is deeply interconnected with the electronics supply chain. Its operation depends on:

• battery management systems (BMS),
• power semiconductors and power modules,
• high-precision test and diagnostic equipment,
• automation platforms,
• chemical and materials supply chains.

Reports from Electrive, Bloomberg and sector-specific manufacturing media have noted that US EV supply chains are undergoing reconfiguration. With Ford and SK On now taking separate operational paths, suppliers may face two distinct procurement frameworks, each with its own technical requirements and design roadmap.

For electronics manufacturers, PCB suppliers, EMS providers and semiconductor designers, this may translate into new opportunities but also into a need to track the diverging strategies of both companies closely.

A stable breakup?

Although the dissolution of a joint venture can sound disruptive, the tone in US state-level and industry communications suggests otherwise. Production continues, investments remain active, and the strategic importance of both battery plants has been reaffirmed in public statements by state officials.

In a market where EV battery demand, policy incentives and supply chains shift rapidly, the transition from a single joint venture to two independently managed operations may prove to be less a rupture and more an adaptation, allowing both Ford and SK On to move faster and pursue their own technology and sourcing priorities.