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Ford and SK On are ending their US battery joint venture

Ford and SK On are terminating their US battery joint venture originally aimed at producing batteries for electric trucks. The companies will divide the assets, with Ford taking control of two plants in Kentucky and SK On managing a facility in Tennessee. This decision comes as demand for electric vehicles lags behind expectations and follows the end of the federal EV tax credit.

Key points

  • Ford and SK On formed a joint venture four years ago with an investment of $11.4 billion.
  • The venture aimed to create battery production facilities in Tennessee and Kentucky.
  • The agreement to end the joint venture allows Ford to take ownership of the Kentucky plants while SK On will run the Tennessee facility.
  • The decision reflects declining electric vehicle demand that has not met industry forecasts.
  • The discontinuation follows the reduction of the federal EV tax credit, impacting sales.

Why it matters

  • Electric vehicle production was a major focus in the automotive industry, with significant investments made in battery technology and manufacturing.
  • The shift away from joint ventures reflects a trend in 2025 where companies are reevaluating strategies due to market fluctuations and changing consumer behaviors.
  • The end of government incentives like the EV tax credit is indicative of broader economic factors affecting the EV market.

The dissolution of the Ford-SK On joint venture showcases the challenges faced by the electric vehicle industry and highlights the need for companies to adapt to changing market conditions.