Ford and SK On Restructure Battery Partnership, Shifting Control of Key U.S. Plants

SK On and Ford Motor Co. have finalized a plan to overhaul their U.S. battery joint venture, BlueOval SK, marking a significant change in how the companies will manage future production.

According to SK On, the revised structure places both Kentucky battery facilities entirely under a Ford subsidiary, while SK On will take full ownership of the Tennessee battery plant, located within Ford’s BlueOval City development in Stanton.

"This agreement allows SK On to strategically realign assets and production capacity to improve its operational efficiency. It also enables the company to enhance productivity, operational flexibility, and respond more effectively to evolving market dynamics and diverse customer needs," the company said in its statement.

"Taking ownership and control of the Tennessee plant will also further strengthen SK On’s battery innovation and manufacturing leadership. SK On also plans to focus on profitable and sustainable growth in the U.S. by supplying electric vehicle batteries to Ford and various customers, as well as energy storage systems, from its Tennessee plant."

The companies expect the restructuring to receive standard regulatory approvals, with completion targeted for the first quarter of 2026.

BlueOval SK in Tennessee

SK On emphasized its long-term commitment to the Stanton facility.

"SK On greatly values the local communities in which it invests and our team members where it operates across the United States," the statement read. "SK On is committed to establishing the Tennessee facility as a cornerstone of its expanding U.S. advanced battery manufacturing capabilities and production. SK On will also maintain its solid strategic relationship with Ford going forward, as the Tennessee plant is located within the automaker’s BlueOval City campus."