Ford $F ( ▲ 1.19% ) and South Korea’s SK On are looking to unload surplus EV batteries from their joint venture in response to the slowing pace of electric vehicle demand in the U.S
The details: The companies, which initially partnered to build EV power sources for Ford vehicles, are now seeking outside buyers for batteries produced at their BlueOvalSK plant in Glendale, Kentucky.
Potential customers include energy companies and rival automakers, according to Ford.
Nissan is reportedly close to securing a supply deal with the venture.
The Glendale plant (one of three planned facilities) will continue to produce batteries for the Ford F-150 Lightning. Sales for the lightning fell 26% in Q2.
What they’re saying: “Both of our parents are looking for other opportunities for other new business,” said Michael Adams, CEO of BlueOvalSK (via Bloomberg).
Why it matters: Many automakers are scaling back from aggressive growth targets to avoid stranded assets. Ford and SK On are pivoting from a single-customer model to a diversified strategy, selling batteries into new sectors to stabilize the business.
Between the lines: Plans for the joint venture have been significantly pared back since its launch in 2021, when the companies secured a $9.2 billion loan from the U.S. Department of Energy.
Glendale’s workforce target has been cut from 2,500 jobs to 1,450.
A second Kentucky battery plant is on hold.
Ford has slowed the timeline for a third factory in Stanton, Tennessee, part of a $5.6 billion project.
Zooming out: These changes align with Ford’s broader EV strategy shift: focusing less on expensive flagship models and more on affordable EVs powered by lower-cost lithium iron phosphate batteries.
“We’re in a monitoring phase and just being conservative in what we do in order to make sure that we’re safe. I think the market continues to grow, but it will be at a slower pace,” added Adams.
Bottom line: Ford isn’t walking away from EVs—it’s recalibrating. The market is still expanding, but at a slower, uneven pace. To stay profitable, automakers will need to adapt with flexible supply chains, diverse customer bases, and an emphasis on affordability.
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