SK On and Ford Motor agreed to disband their BlueOval SK joint venture, splitting three battery factories originally billed as one of the largest manufacturing investments in American automotive history.
Under the deal, Ford will take full ownership of two Kentucky plants while SK On assumes control of the Tennessee facility at Ford’s BlueOval City campus. The transaction is expected to close in the first quarter of 2026.
The breakup reflects deteriorating economics in the U.S. electric vehicle market. Ford’s EV sales dropped 61% in November following the September expiration of federal purchase incentives worth up to $7,500 per vehicle. Ford CEO Jim Farley had warned the tax credit loss could halve industry-wide EV sales.
SK On, which posted an operating loss of ₩124.8 billion ($85 million) in the third quarter—nearly double its prior-quarter deficit—said it would redirect the Tennessee capacity toward energy storage systems, a sector with stronger demand. The company characterized the split as a strategic realignment to reduce debt and improve flexibility.
The Tennessee plant’s production schedule remains undefined pending the ownership transfer. SK On said it would maintain a supplier relationship with Ford but offered few specifics.
The dissolution follows similar pivots by rivals LG Energy Solution and Samsung SDI, both repurposing EV production lines for grid storage as the industry’s U.S. outlook dims.
