South Korean battery manufacturer says Stanton plant’s production start date is tied to ownership transition.
Image Credit: Cassandra Stephenson/Tennessee Lookout
***Note from The Tennessee Conservative – this article posted here for informational purposes only.
By Cassandra Stephenson [Tennessee Lookout -CC BY-NC-ND 4.0] –
South Korean battery manufacturer SK On will take full ownership of the battery plant at BlueOval City in Stanton after the company and Ford Motor Company announced plans to end their joint U.S. battery factory venture Thursday.
Ford and SK On formed BlueOval SK in 2021 to build three battery plants: two in Kentucky and one at Ford’s 6-square-mile manufacturing site in rural West Tennessee. The plants represent a combined $11.4 billion investment.
Under the mutual restructuring agreement announced Thursday, a Ford subsidiary will take full ownership of the Kentucky battery plants, and SK On will own and operate the battery plant in Tennessee, according to a statement from SK On. The agreement is subject to regulatory approvals and is expected to be complete by the first quarter of 2026.
The agreement allows SK On to “improve its operational efficiency” and “respond more effectively to evolving market dynamics and diverse customer needs,” the company stated.
The start of production at the Tennessee battery plant “remains flexible at this time, as it’s tied to the ownership transition,” an SK On spokesperson said Thursday.
BlueOval SK External Affairs Director Keli McAlister wrote in a statement that the company is aware of SK On’s announcement and BlueOval SK is “working with both of our parent companies to determine what this means for BlueOval SK.”
A representative for Ford did not immediately respond to a request for comment.
State officials are keeping a close eye on the arrangement because of a nearly $1 billion investment in BlueOval City.
“We are aware of Ford and SK On’s decision to end their U.S. battery joint venture; however, this corporate decision does not change or diminish the commitments made to West Tennessee,” the state’s Department of Economic and Community Development wrote in a statement. “The jobs, investment and long-term, generational impact promised to the region remain on track.”
Ford has pushed back its start date for mass production at the BlueOval City campus twice over the last two years amid a shifting electric vehicle market.
The industry has faced heightened political turbulence as President Donald Trump’s administration targeted Biden-era electric vehicle funding and tax credits.
As of August, Ford plans to start mass production of its next-generation electric pickup truck in 2028, three years after its initial production goal of 2025.
SK On “plans to focus on profitable and sustainable growth in the U.S. by supplying electric vehicle batteries to Ford and various customers, as well as energy storage systems, from its Tennessee plant,” the company stated.
It emphasized its ongoing commitment to the Tennessee plant, stating the facility is a “cornerstone of its expanding U.S. advanced battery manufacturing capabilities and production.”
SK On will “maintain its solid strategic relationship with Ford going forward,” as the Tennessee battery plant is located on the Ford campus.
When the BlueOval City project was announced in 2021, it received nearly $1 billion in state economic incentives contingent on creating 5,760 direct new jobs over a 10-year period, with Ford’s vehicle manufacturing plant slated to employ 3,000 of those workers. The remainder would be employed by the BlueOval SK battery plant.
BlueOval SK reported in September that it had hired 350 employees in Tennessee and 1,450 at its battery plants in Kentucky.
Ford announced a $2 billion investment in August to convert a Kentucky manufacturing plant to build electric vehicles, starting with a mid-sized electric pickup truck slated to launch in 2027.
*Sam Stockard contributed reporting.
One Response
Yup, billion dollar boondoggle for something all with good sense knew couldn’t and wouldn’t fly.