Ford Motor Co. and South Korean conglomerate SK On have parted ways on their joint electric vehicle battery endeavors — including on the massive $5.8 billion BlueOval SK Battery Park in Glendale.
The battery park in Hardin County, which was announced in 2021 and promised to bring 5,000 jobs to Kentucky, has faced delays, worker safety concerns, union organizing and most recently lawsuits.
Now, the future of the battery plant appears to be in the sole hands of Ford.
“This is at least good news for Kentucky. Ford has been committed to Kentucky … and their commitment to our state and our workforce remains strong,” Gov. Andy Beshear said during a Dec. 11 press conference.
According to a statement from SK On provided to USA Today Co., the two entities mutually agreed “to restructure their U.S. battery manufacturing joint venture, BlueOval SK.”
This restructuring leaves a Ford subsidiary to take full ownership of the twin plants in Glendale and SK On will take ownership of the plants in Tennessee. The closing of this separation is expected to be completed by the first quarter of 2026.
In a statement SK On said, “Taking ownership and control of the Tennessee plant will also further strengthen SK On’s battery innovation and manufacturing leadership. SK On also plans to focus on profitable and sustainable growth in the U.S. by supplying electric vehicle batteries to Ford and various customers, as well as energy storage systems, from its Tennessee plant. SK On greatly values the local communities in which it invests and our team members where it operates across the United States. SK On is committed to establishing the Tennessee facility as a cornerstone of its expanding U.S. advanced battery manufacturing capabilities and production. SK On will also maintain its solid strategic relationship with Ford going forward, as the Tennessee plant is located within the automaker’s BlueOval City campus.”
In response to disclosure of separation of the two companies, Ford said, “We are aware of SK’s disclosure and we have nothing further to share at this time.”
What to know about the BlueOval SK Battery Park in Kentucky
The nearly $6 billion battery park has been a hallmark of Beshear’s tenure as governor, with him pointing to the facility as bringing the future of the EV industry to Kentucky, leading the state to be dubbed the “EV capital of the U.S.”
As of Dec. 11, the plant, which is now in the sole ownership of Ford, is believed to still be in operation. Beshear said his administration is in communication with Ford to “understand the impact of this announcement and the direction the company intends to take.”
“I remain optimistic about the future of these facilities, but there is no question that actions taken out of Washington, D.C. by this current administration and Congress has made it much more complicated and may make it take longer to achieve the desired results that we have in those two factories,” Beshear said.
Since the announcement of the project four years ago, the plant has been behind a large spur of growth in Hardin County, just south of Louisville.
The BlueOval SK Battery Park, at 1,500 acres, was considered the largest EV battery facility in the world at the time of its announcement.
Each of the two twin battery plants is expected to employ 2,500 workers. Additionally, the facility is home to the $25 million Elizabethtown Community and Technical College BlueOval SK Training Center, the lone co-branded learning center within the state community college system that opened in May 2024. The governor previously granted $10 million to the plant to support the training and development of its employees.
Challenges facing BlueOval SK Battery Park in Glendale
Since the plant started hiring workers in 2023, it has faced a myriad of issues, including challenges from the consumer market for EVs and worker issues.
In October 2023, the plant delayed the start of production at Kentucky 2, one of its twin battery plants at the massive battery park facility. At the time, a Ford spokesperson attributed this delay to the slower than anticipated consumer demand for EVs.
In January, workers at the plant filed to join the United Auto Workers, the union representing workers at Ford. Workers largely attributed this union push due to ongoing health and safety concerns.
A Courier Journal investigation and review of thousands of public records found dozens of workplace injuries; hospitalizations related to respiratory issues; unshakeable mold contamination; a bat-infested training facility; blocked emergency exit doors; and chemical exposure risks.
After facing delays for a union election, workers voted in August to join the UAW; however, the results are currently being contested by BlueOval SK with the National Labor Relations Board.
It remains to be seen how the dissolution of BlueOval SK as a company will impact the ongoing union dispute, but most Ford plants across the U.S. that are solely owned by Ford are unionized.
Since September, at least two lawsuits have been filed by current and/or former workers at BlueOval SK Battery Park alleging the company failed to properly pay workers for time worked.
“It is still too early to know what the full impacts of this transition will be. As with any major economic development initiative, many moving parts must align for continued growth,” said Sen. Matt Deneen, R-Elizabethtown who represents the area where the plant is located. “The Kentucky General Assembly remains committed to being responsible stewards of your tax dollars. I value my strong working relationships with Ford representatives and the many stakeholders who may be affected by this development.”
By Olivia Evans, Louisville Courier Journal; USA Today Co. reporters Connor Giffin, Hannah Pinski and Corey Davis contributed to this report.
