SK On Takes Full Control of Tennessee EV Battery Plant After Ford Breakup

South Korean battery maker SK On ended its joint venture with Ford on May 21, taking sole control of its Tennessee EV battery plant as the partners unwound their 2022 tie-up amid weaker EV demand. SK On renamed the facility from BlueOval SK Tennessee to SK On Tennessee and completed the restructuring five months after announcing the breakup. Ford separately owns and operates two battery plants in Kentucky following the dissolution. The move reflects slowing EV sales and US policy uncertainty pressuring battery makers across the industry.

Restructuring and Operational Changes

SK On completed the transition to sole ownership of the Tennessee facility, which now operates under the SK On Tennessee brand. Ford retained independent control of its two Kentucky battery plants, which the company is repositioning toward stationary energy storage systems rather than EV batteries.

The breakup came after SK On cut 968 jobs at its Georgia plant in March, reflecting broader adjustments across the battery manufacturer's US operations.

Financial Impact

The joint venture dissolution generated significant financial benefits for SK On. The company stated the change will reduce its debt by approximately 5.4 trillion won, equivalent to US$3.6 billion. SK On also projected annual interest cost savings of US$180 million from the restructuring.

Additionally, SK On said it will reduce annual depreciation linked to the Kentucky plants by about 330 billion won, or US$218 million.