SK On-Ford partnership
SK On ends U.S. EV battery joint venture with Ford
By Kim Eun-jung
SEOUL, May 21 (Yonhap) -- South Korean battery maker SK On Co. said Thursday it has ended its joint partnership with U.S. automaker Ford Motor Co. to separately own and operate electric vehicle (EV) battery plants in the United States.
SK On said it has renamed the former BlueOval SK Tennessee plant as "SK On Tennessee" and begun operating the facility independently. Ford will separately own and operate two battery plants in Kentucky.
SK On Co.'s electric vehicle battery plant in Tennessee in the United States is seen in this undated file photo provided by the South Korean battery maker. (PHOTO NOT FOR SALE) (Yonhap)
The restructuring was completed five months after the two companies announced plans to dissolve the joint venture, which was established in 2022 amid strong expectations for EV demand.
SK On said the end of the joint venture structure is expected to reduce its debt burden by about 5.4 trillion won (US$3.6 billion), with annual interest cost savings estimated at around US$180 million.
The company also expects to reduce annual depreciation expenses by about 330 billion won that had been associated with the Kentucky plants.
SK On said the restructuring would strengthen its financial structure and improve operational efficiency at its U.S. facilities, vowing to respond more flexibly to changes in the North American market.
The SK-Ford joint venture was launched amid a boom in EV investments backed by the Joe Biden administration's push to build a U.S. EV supply chain. However, slowing EV demand and policy uncertainty under U.S. President Donald Trump have weighed on the market.
The latest move follows the dismissal of 968 employees at SK On's battery plant in Georgia in March amid weakening EV demand.
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