Ford and SK On are officially moving in different directions with part of their North American battery partnership. The split comes after Ford announced a pivot away from electric vehicles (EVs) and the launch of its new energy storage business.
South Korea’s SK Innovation announced this week that SK On has completed the restructuring of BlueOval SK, its battery joint venture with Ford. As part of the move, the Tennessee battery facility will now operate independently under the name “SK On Tennessee,” ending the original joint venture structure for that site.
While SK On takes direct control of the Tennessee operation, Ford is charting a very different future for the former BlueOval SK facility in Glendale, Kentucky.
Ford pivots Kentucky battery plant toward energy storage
Ford confirmed that its new Ford Energy division has assumed ownership of the Kentucky site, which is now being retooled to manufacture battery energy storage systems instead of EV batteries.
The renamed facility, now operating as Ford Energy Systems, is expected to begin producing its first products in late 2027.
According to Ford, the site will manufacture LFP prismatic battery cells along with large-scale battery storage systems designed for utilities, industrial customers, and data centers. The company said the operation will focus on assembling “battery energy storage system modules and 20-foot DC container systems.”
The energy storage market has exploded in recent years, fuelled by AI-driven data center growth, renewable energy expansion, and utilities seeking grid-scale storage solutions. Tesla’s Megapack business has become one of the most visible examples of how lucrative the segment can be, and Ford now appears to be positioning itself to compete in the same space.
The original plan
Ford and SK On originally partnered through BlueOval SK to build multiple EV battery plants in the U.S., including facilities in Kentucky and Tennessee. However, weakening EV demand growth and shifting market conditions forced both companies to reassess their plans.
The partnership effectively began unraveling late last year when the companies dissolved part of the joint venture arrangement.
Ford’s pivot also comes with significant economic implications for Kentucky. Hundreds of workers were reportedly laid off during the transition away from EV battery production, though the company says its new investment plans should eventually create more than 2,100 jobs across both plants.
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