The South Korean battery manufacturer SK On is withdrawing from its joint battery partnership with Ford in the U.S., and will independently operate its Tennessee plant going forward. The former BlueOval-SK facility in Tennessee has been renamed “SK On Tennessee.” In return, Ford will assume sole control of two battery plants in Kentucky.
The restructuring was completed five months after the dissolution of the joint venture. The partnership was founded in 2022 when the outlook for electric vehicle demand was much more optimistic.
Financial Relief for SK On
For SK On, the primary focus of the separation is financial relief. The company expects the dissolution of the joint venture to reduce its debt by approximately 5.4 trillion won, equivalent to about $3.6 billion. Additionally, SK On anticipates annual savings of approximately $180 million on interest expenses. The new structure is also expected to reduce depreciation costs. The company therefore presents the decision as a step toward strengthening its financial structure and managing its U.S. operations more efficiently.
Sources:
https://en.yna.co.kr/view/AEN20260521011400320
https://askinno.com/global/archives/154659
