Ford Motor’s battery joint venture with South Korea’s SK On commenced production at its Kentucky facility Tuesday, delivering the automaker’s first domestically manufactured EV batteries as its electric vehicle strategy faces mounting setbacks.
BlueOval SK’s inaugural plant in Glendale began manufacturing lithium-ion cells for the F-150 Lightning pickup and E-Transit commercial van, representing a $5.8 billion investment that Kentucky Governor Andy Beshear called the state’s largest economic development project. The facility will employ 2,500 workers when fully operational.
The production milestone arrives as Ford confronts severe headwinds in its electric transition. The company’s EV sales plummeted 31% in the second quarter, while rival General Motors reported 111% growth in electric vehicle deliveries. Ford’s Model E division has hemorrhaged $7.2 billion since 2023, forcing the automaker to slash EV capital allocation and delay ambitious electrification targets.
Ford indefinitely postponed its second Kentucky battery plant last year as part of $12 billion in deferred EV investments. The company now pins hopes on a revamped strategy targeting affordable electric trucks starting under $30,000, though those models won’t reach showrooms until 2027.
The Trump administration’s rollback of EV incentives adds further uncertainty to Ford’s recovery prospects, even as the Kentucky plant begins supplying batteries for vehicles struggling to find buyers.
