South Korean battery manufacturer SK On has decided to give up its joint venture with Ford Motor in the United States. Reasons for this decision include declining sales figures in the electric vehicle segment and the elimination of government subsidies in the USA. As part of the dissolution, Ford will take sole control of the battery facilities in Kentucky. SK On will assume full responsibility for the Tennessee plant. According to the company, the Tennessee facilityʼs production start date is flexible and linked to the transfer of ownership.
Total investment of eleven billion dollars
The partnership, which began in 2022, involved a total investment of 11.4 billion US dollars. SK On justifies the split as a way to respond more flexibly to market changes while the company plans to expand its presence in the North American energy storage systems market. The reorganization is also intended to improve the SK Onʼs financial situation by reducing debt and fixed costs.
