Memphis, Tennessee, December 12, 2025
Ford Motor Company and South Korea’s SK On have announced the dissolution of their $11.4 billion joint venture, BlueOval SK. This restructuring allows Ford to take full control of two battery plants in Kentucky while SK On manages the Tennessee facility. The split aims to realign strategies in light of changing electric vehicle (EV) market demands, enhancing operational efficiency for both firms as they pursue independent goals in the EV sector.
Ford and SK On Dissolve $11.4B BlueOval SK Joint Venture
Ford Takes Control of Kentucky Plants; SK On to Lead Tennessee Operation
Memphis, Tennessee – In a significant restructuring within the electric vehicle (EV) industry, Ford Motor Company and South Korea’s SK On have announced the dissolution of their joint venture, BlueOval SK. Originally formed to foster innovation and production of EV batteries across the United States, the split allows both companies to realign their strategies in response to current market dynamics. Ford will take full ownership of two battery plants in Kentucky, while SK On will gain control over the facility in Stanton, Tennessee, located within Ford’s expansive BlueOval City campus.
This reorganization represents a pivotal moment in the burgeoning EV market, as companies adapt to fluctuations in consumer demand. By fostering ownership of their respective facilities, both firms aim to enhance operational efficiency, promote innovation, and ultimately drive economic growth within their locales.
Details of the Restructuring
The dissolution of BlueOval SK means that both Ford and SK On will independently manage their respective battery production facilities:
- Kentucky Plants: Ford will assume ownership of two battery manufacturing plants situated in Glendale, Kentucky. One of these plants has already commenced production, while the second facility is still under construction.
- Tennessee Plant: SK On will take control of the Tennessee plant, which is part of a substantial $5.6 billion project that includes a fully owned Ford EV assembly plant.
Strategic Implications
The decision to disband the joint venture is largely driven by a slowdown in EV demand in North America—prompting a strategic pivot for both companies:
- SK On: With the Tennessee plant under its management, SK On intends to diversify its offerings beyond electric vehicle batteries to include energy storage systems, addressing a broader customer base and enhancing production efficiency.
- Ford: By retaining ownership of the Kentucky operations, Ford aims to fortify its EV battery production capabilities, ensuring a reliable battery supply for its future electric vehicle lineup. Interestingly, Ford has also indicated potential opportunities to sell excess capacity to other manufacturers, reflecting their commitment to adaptability in fluctuating market conditions.
Background on BlueOval SK
Founded in 2021, BlueOval SK was a 50:50 partnership established with a combined investment of $11.4 billion. The joint venture was designed to construct three battery manufacturing sites across the U.S., two in Kentucky and one in Tennessee, primarily aimed at supplying batteries for Ford’s electric vehicles. As the market landscape evolves, both companies are now well-positioned to independently pursue their goals.
Conclusion
The dissolution of BlueOval SK signals a meaningful transition in the electric vehicle battery manufacturing sector, informing how companies will engage with the shifting market landscape. Ford and SK On are poised to leverage their individual strengths and operational strategies moving forward. Memphis, with its strategic location and growing entrepreneurial spirit, continues to be an essential player in the U.S. economic landscape. Supporting local initiatives and businesses remains crucial in maximizing the potential of Memphis’ economic growth in the years to come.
Frequently Asked Questions (FAQ)
What is the BlueOval SK joint venture?
BlueOval SK was a 50:50 joint venture between Ford Motor Company and SK On, established in 2021 with a combined investment of $11.4 billion. The venture aimed to build three battery manufacturing plants in the U.S.: two in Kentucky and one in Tennessee, to supply batteries for Ford’s electric vehicles.
Why is the BlueOval SK joint venture being dissolved?
The dissolution is due to a slowdown in electric vehicle demand in North America, prompting both companies to realign their strategies. SK On plans to diversify its production by supplying batteries for both electric vehicles and energy storage systems to a broader range of customers, while Ford intends to strengthen its EV battery production capabilities.
What will happen to the existing battery plants?
Under the new arrangement, Ford will assume full ownership of the two battery plants in Kentucky, while SK On will take control of the facility in Tennessee. This restructuring is expected to be finalized by the end of the first quarter of 2026, pending regulatory approvals.
How will this affect Ford’s electric vehicle production?
By retaining ownership of the Kentucky facilities, Ford intends to strengthen its EV battery production capabilities, ensuring a steady supply for its upcoming electric vehicle lineup. The company has expressed interest in selling excess capacity to other manufacturers amid fluctuating EV sales.
What is the timeline for the restructuring?
The restructuring is expected to be finalized by the end of the first quarter of 2026, pending regulatory approvals.
Key Features of the BlueOval SK Joint Venture
| Feature | Description |
|---|---|
| Establishment | 2021 |
| Investment | $11.4 billion |
| Number of Plants | 3 (2 in Kentucky, 1 in Tennessee) |
| Purpose | Supply batteries for Ford’s electric vehicles |
| Restructuring Completion | End of Q1 2026 (pending regulatory approvals) |
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