Ford and SK On are ending their joint venture to build two battery factories, one in Kentucky and the other in Tennessee. The move comes as the electric vehicle (EV) market is declining, reducing the need for batteries.
Ford announced the joint venture, known as BlueOvalSK, four years ago with a $11.4 billion investment that was expected to create 11,000 jobs and produce 60 gigawatt-hours of battery capacity per year. However, EV subsidies have been discontinued, and there is less pressure on automakers to sell electric vehicles.
As a result, Ford has scaled back its EV plans, including delaying the construction of a fully electric replacement for the F-150 Lightning in Tennessee. Instead, the company will build a smaller midsize electric truck that is expected to be cheaper to produce.
SK On, which was supposed to take full ownership of the plant in Tennessee, has decided to end the partnership due to declining EV sales prospects in the US. The company plans to focus the Tennessee plant's output on energy storage systems instead.
Ford will assume full ownership of the battery factory in Kentucky, while SK On will retain control of the plant in Tennessee. Industry analyst Sam Abuelsamid believes that Ford may use the Kentucky plant to produce lithium-iron-phosphate (LFP) cells for energy storage systems and potentially switch some capacity to producing lithium-metal-rich (LMR) cells.
The move marks a significant shift in the electric vehicle industry, as companies reassess their strategies in response to declining EV sales. The partnership's end also highlights the growing importance of battery recycling and repurposing existing facilities to meet changing market demands.
Ford announced the joint venture, known as BlueOvalSK, four years ago with a $11.4 billion investment that was expected to create 11,000 jobs and produce 60 gigawatt-hours of battery capacity per year. However, EV subsidies have been discontinued, and there is less pressure on automakers to sell electric vehicles.
As a result, Ford has scaled back its EV plans, including delaying the construction of a fully electric replacement for the F-150 Lightning in Tennessee. Instead, the company will build a smaller midsize electric truck that is expected to be cheaper to produce.
SK On, which was supposed to take full ownership of the plant in Tennessee, has decided to end the partnership due to declining EV sales prospects in the US. The company plans to focus the Tennessee plant's output on energy storage systems instead.
Ford will assume full ownership of the battery factory in Kentucky, while SK On will retain control of the plant in Tennessee. Industry analyst Sam Abuelsamid believes that Ford may use the Kentucky plant to produce lithium-iron-phosphate (LFP) cells for energy storage systems and potentially switch some capacity to producing lithium-metal-rich (LMR) cells.
The move marks a significant shift in the electric vehicle industry, as companies reassess their strategies in response to declining EV sales. The partnership's end also highlights the growing importance of battery recycling and repurposing existing facilities to meet changing market demands.
so i think this is kinda weird... they spent like 11 billion dollars on a joint venture that was meant to create 11k jobs and produce 60 gigawatt-hours of battery capacity, but now it's all gonna be for nothing 
because ev subsidies are gone. and now ford's just scaling back its ev plans 
️, which is a thing that still needs batteries. but at the same time, it's like what happened to all those jobs and resources? 
... companies need to adapt to changing market demands, and maybe they can learn from each other's mistakes. but still, 11 billion dollars down the drain 
.
First, it's like Ford and SK On just give up on building those massive battery factories they were so hyped about four years ago... I mean, 11,000 jobs down the drain already? 
And now they're scaling back plans for an all-electric F-150 Lightning replacement? What's the point of even having a fully electric truck if it's just gonna be smaller and cheaper to produce?! 
Not just throwing money at new projects that might not pan out. I mean, come on, we're already talking about a massive shift in EV strategy... why not take this opportunity to rethink the whole battery game? 
. I mean, think about it - two massive battery factories that were going to create thousands of jobs and produce tons of batteries for electric vehicles are just... not happening anymore 
. And now Ford is scaling back its EV plans and shifting focus to making smaller trucks? It's like they're throwing in the towel 
.
. We still need reliable, efficient batteries for all sorts of applications - not just electric vehicles! And what about the environmental impact of all these abandoned facilities? It's like we're taking two steps back instead of moving forward 
.
.
. EV subsidies are gone and no one's really pushing the companies to sell more electric vehicles. 
According to reports, the global lithium market was valued at $6.5 billion in 2022 and is expected to reach $24.7 billion by 2030, growing at a CAGR of around 21%. 
.
.
.
and SK On is sticking to energy storage systems in TN... 
which is still super interesting! did you know lithium-iron-phosphate (LFP) cells are getting more popular? 
but sales have declined by 20% in the last year alone 
.