South Korean battery manufacturer SK On will take full ownership of the battery plant at BlueOval City in Stanton, Tennessee, after the company and Ford Motor Company announced plans to end their joint U.S. battery factory venture.
Ford and SK On formed BlueOval SK in 2021 to build three battery plants: two in Kentucky and one at Ford’s 6-square-mile manufacturing site in rural West Tennessee. The plants represent a combined $11.4 billion investment.
Under the mutual restructuring agreement announced Thursday, a Ford subsidiary will take full ownership of the Kentucky battery plants, and SK On will own and operate the battery plant in Tennessee, according to a statement from SK On. The agreement is subject to regulatory approvals and is expected to be complete by the first quarter of 2026.
The agreement allows SK On to “improve its operational efficiency” and “respond more effectively to evolving market dynamics and diverse customer needs,” the company stated.
The start of production at the Tennessee battery plant “remains flexible at this time, as it’s tied to the ownership transition,” an SK On spokesperson said Thursday.