Ford and South Korean battery maker SK On had formed a joint venture four years ago, with plans to invest $11.4 billion in building factories in Tennessee and Kentucky for producing batteries for the next generation of electric F-Series trucks. However, recent developments have led to the dissolution of this partnership.
SK On, a subsidiary of SK Innovation, announced that they have reached an agreement with Ford to end the joint venture. As per the agreement, Ford will take over ownership and operation of the twin battery plants in Kentucky, while SK On will continue to operate the factory at the BlueOval SK campus in Tennessee. This decision marks the end of a significant collaboration in the electric vehicle industry.
Despite the separation, SK On stated that they will maintain a strategic partnership with Ford, focusing on the operations at the Tennessee plant. The details of this ongoing partnership were not disclosed in the announcement.
The creation of the joint venture had taken place during a period of substantial investment in electric vehicle production across the industry. While there has been a steady increase in EV sales, the demand has not met the optimistic projections of the industry. Factors such as the expiration of the federal EV tax credit have also impacted the pace of sales in the market.
As the automotive landscape continues to evolve, partnerships and collaborations play a crucial role in driving innovation and growth. The decision to end the joint venture between Ford and SK On reflects the shifting dynamics within the electric vehicle sector. It will be interesting to see how both companies navigate their respective paths moving forward.
For those interested in staying updated on the latest developments in the tech industry, JS will be hosting an event in San Francisco from October 13-15, 2026. Stay tuned for exciting discussions and insights on the future of technology.
