Seoul: South Korean battery maker SK On Co. announced its decision to end the joint venture with Ford Motor Co. for their U.S. battery manufacturing plants. The companies aim to independently own and operate the facilities, a partnership that began three years ago.

According to Yonhap News Agency, SK On and Ford had initially formed a 50:50 joint venture named BlueOval SK in 2022. This partnership managed three battery plants, two located in Kentucky and one in Tennessee. Under the new agreement, a Ford subsidiary will take full control of the Kentucky plants, while SK On will own and operate the Tennessee plant.

The transition is expected to be completed by the first quarter of 2026. Post-transition, SK On will maintain only one battery joint venture in the U.S. with Hyundai Motor Group, located in Georgia. Despite the separation, SK On emphasized the continuation of its strategic partnership with Ford.

SK On stated its intention to pursue profitable and sustainable growth in the U.S. market by supplying electric vehicle batteries and energy storage systems from the Tennessee plant. The company is committed to developing the Tennessee facility as a pivotal part of its growing advanced battery manufacturing capabilities in the U.S.