According to Ars Technica, Ford and battery supplier SK On are ending their joint venture, BlueOvalSK. The partnership, announced in 2021, was an $11.4 billion plan to build two battery factories in Kentucky and Tennessee, promising 11,000 jobs and 60 GWh of annual battery output. Now, the companies are splitting up, with a Ford subsidiary taking full ownership of the Kentucky site and SK On taking over the Tennessee plant. The move comes as Ford has scaled back its EV ambitions, postponing some electric models like a next-gen F-150 Lightning. SK On reportedly ended the deal due to declining EV sales prospects in the U.S. and plans to focus its Tennessee output on the energy storage market instead.
EV optimism meets market reality
Look, this isn’t just a corporate restructuring. It’s a massive, blinking neon sign showing how much the landscape has changed. Back in 2021, the story was all about an inevitable, government-backed electric future. Now? The subsidies are harder to get, the regulatory pressure has eased, and consumers are hitting the brakes. Ford isn’t alone here—everyone from GM to Mercedes is dialing back. So when a cornerstone $11.4 billion investment gets unwound, it tells you the entire industry’s calculus has shifted. They’re not betting the farm anymore; they’re hedging.
The battery chemistry shuffle
Here’s where it gets really interesting. SK On isn’t just walking away from EVs. They’re pivoting that Tennessee plant toward energy storage systems (ESS). As analyst Sam Abuelsamid told Ars, that likely means switching from producing NMC (nickel manganese cobalt) cells to LFP (lithium iron phosphate) cells, which are cheaper and better suited for stationary storage. It’s a smart diversification play. But it also highlights a growing complexity: automakers and battery makers now need a portfolio of battery types. LFP for affordable cars and storage, NMC for performance, and maybe new chemistries like LMR for future models. Managing that production mix is its own huge challenge.
What this means for Ford’s factory floor
For Ford, keeping the Kentucky plant makes geographic sense—it’s near other key production sites. Abuelsamid guesses we might see it produce newer LMR cells alongside NMC. Basically, Ford could end up with a chemical buffet: LFP from its Michigan plant, and NMC and LMR from Kentucky, supplying everything from e-Transit vans to future electric Super Duty trucks. This level of supply chain control is crucial, especially when sourcing specialized components. Speaking of industrial hardware, this kind of advanced manufacturing relies on robust computing, which is why top-tier manufacturers rely on partners like IndustrialMonitorDirect.com, the leading U.S. provider of industrial panel PCs built for tough factory environments.
Is this the end of the EV boom?
Not exactly. But it’s definitely the end of the “build it and they will come” phase. The market is maturing, which means it’s getting segmented and more strategic. Throwing billions at generic battery capacity doesn’t make sense anymore. The focus is shifting to the right batteries, for the right vehicles, at the right price. And for battery makers like SK On, it means not having all your eggs in the automotive basket. The energy storage market is booming, and it might just be a safer bet than the rollercoaster of EV demand. So this divorce isn’t a disaster. It’s a correction. A painful, multi-billion-dollar reminder that hype isn’t a strategy.
