DETROIT (Business Emerge Exclusive): SK On stated that its collaboration with Ford on battery manufacturing in the United States will conclude, with both companies preparing to manage the facilities on their own. The update reflects a shift in how the two firms plan to operate their large battery projects in the country.
The announcement was made on Thursday as the South Korean battery producer confirmed that the shared structure governing their US plants would be dissolved. The facilities involved include major battery sites located in the states of Kentucky and Tennessee.
Data available from earlier filings shows that SK On and Ford jointly committed an investment of 11.4 billion dollars in 2022 for the development of the battery factories. These plants were intended to support the expanding electric vehicle supply chain and strengthen domestic battery production capacity.
Following the revised agreement, each company will now oversee its respective site without a joint ownership framework. A subsidiary of Ford will assume responsibility for managing the Kentucky operations, while SK On will take full control of the Tennessee plant under its own management structure. SK Innovation, the parent company of SK On, noted that both firms will run their facilities independently going forward.
The adjustment comes during an ongoing push to increase US battery output as demand for electric vehicles continues to rise. Independent operation could allow both companies to make production decisions based on their specific requirements, capacity plans and market strategies.
Industry analysts suggest the separation may influence long term planning for battery supply, procurement and investment across the automotive sector. The shift could also shape future manufacturing collaborations and supply chain coordination within the expanding electric vehicle market.
Further details from SK On and Ford are expected as the facilities move closer to completion. Updates concerning production timelines, workforce needs and operational milestones will be closely monitored by industry participants.
