Ford and South Korean battery giant SK On have officially ended their U.S. battery joint venture, marking a significant shift in America’s electric vehicle manufacturing landscape. The two companies had formed the partnership four years ago with the ambitious goal of investing $11.4 billion to build cutting-edge battery factories in Tennessee and Kentucky facilities meant to power the next generation of Ford’s F-Series electric trucks. While the factories themselves will continue moving forward, the partnership behind them will not.
According to SK On an energy subsidiary of SK Innovation the companies reached a mutual agreement to dissolve the joint venture. As part of the split, both automakers will divide assets tied to the project. Ford will assume full ownership and operational responsibility of the two Kentucky battery plants, while SK On will retain and operate the battery manufacturing facility at the massive BlueOval SK campus in Tennessee. Despite ending the joint venture, SK On confirmed it will maintain a strategic collaboration with Ford, primarily focused on operations at the Tennessee plant.
A Ford spokesperson, when contacted by TechCrunch, acknowledged SK On’s statement but declined to provide further details. The U.S. automaker is expected to outline more of its long-term EV battery strategy in the months ahead, especially with production timelines for its next-generation electric trucks approaching.
The original joint venture was established during a period of rapid investment in the EV sector. At the time, nearly every global automaker was pouring billions into electrification plans, expecting explosive consumer demand. While EV sales have grown in recent years, they have not matched the industry’s earlier, more aggressive forecasts.
Slowing demand, combined with increased competition and rising production costs, has prompted several automakers not just Ford to reassess their EV roadmaps. Another contributing factor is the end of the federal EV tax credit for certain models, which has dampened consumer enthusiasm and slowed purchase rates nationwide.
As incentives shift and market dynamics evolve, automakers are adapting their strategies to remain competitive and financially sustainable. Despite dissolving the joint venture, Ford and SK On remain committed to strengthening America’s EV supply chain.
The continuation of all three battery plants signals the companies’ long-term belief in electric vehicles even as they navigate a more cautious and uncertain market. The transition also highlights a growing industry trend: moving away from shared ownership structures and toward more flexible, independent manufacturing partnerships.
