December 16, 2025: South Korean battery manufacturer SK On said on December 11 it was ending its joint venture with Ford Motor for battery factories in the US.

SK, a subsidiary of SK Innovation, said it was “reorganizing” the structure of BlueOval SK, the 50:50 joint venture, but would continue “strategic cooperation” with Ford.

Ford issued a brief statement on December 12 saying only that it was aware of the announcement and had no further comment.

According to SK, a Ford subsidiary will take full ownership of battery plants in Kentucky, while SK will assume full ownership and operate the Tennessee plant. The Tennessee plant is in ‘BlueOval City’, Ford’s electrified vehicle and parts complex.

This decision is a strategic choice to respond more effectively to changing market and customer needs by improving productivity, operational flexibility, and response speed through selection and focus, SK said.

According to SK On, the new arrangements are expected to be finalized by the end of the first quarter of 2026, subject to various regulatory and other approvals.

A spokesperson for the battery maker said: “We will focus on profitability-oriented internalization in the North American market by supplying batteries and ESS for electric vehicles for various customers such as Ford.”

Last year, Ford’s EV business reported that losses soared in its first quarter to $1.32 billion, or $65,272 for every electric vehicle sold in the first three months of 2024, according to analysis by industry commentator Robert Bryce.

The Detroit-based auto giant lost more money in its EV segment than it made in net profit over its entire business.