Ford and SK Innovation to dissolve battery joint venture

Investing.com -- Ford Motor Co. and South Korea’s SK Innovation Co. have agreed to dissolve their U.S. battery-making joint venture, with each company taking independent control of different production facilities.

Under the agreement, SK Innovation’s battery unit SK On will assume ownership of the BlueOval SK plant in Tennessee, while Ford will take control of their factory in Kentucky, according to a statement from the companies. The separation is expected to be completed by the end of the first quarter of 2026, subject to regulatory approvals.

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This dissolution is a significant shift in Ford’s electric vehicle strategy as the automaker continues to face losses in its EV business. The decision comes amid slower-than-anticipated electric vehicle adoption across the industry.

Despite ending the joint venture, SK On plans to maintain a strategic partnership with Ford focused on the Tennessee plant. The South Korean company stated it expects the split to enhance productivity and improve its operational flexibility.

The restructuring occurs against a backdrop of changing U.S. policy, with President Donald Trump eliminating electric vehicle purchase incentives and reducing fuel economy and emissions standards, making the transition away from combustion engines more challenging for automakers.

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