SK On concludes U.S. battery joint venture with Ford

SEOUL, May 22 (UPI) -- South Korean battery producer SK On said Thursday it concluded its partnership with U.S. automaker Ford Motor Co. and will independently operate an electric vehicle battery plant in Tennessee.

SK On noted that it has converted the former BlueOval SK Tennessee facility into SK On Tennessee, thus placing the battery plant under the sole ownership of the Seoul-based company.

Going forward, SK On will be able to manufacture batteries for EV models manufactured by multinational carmakers in addition to Ford.

Meanwhile, Ford will take charge of two Kentucky plants previously managed under the partnership of the two corporations.

SK On expects the moves would reduce its debt burden by about $3.6 billion. As a result, the company estimates that annual interest expenses will decline by about $180 million.

"The restructuring of the joint venture framework has strengthened our financial structure and enhanced the efficiency of our operations in the United States," SK On said in a statement.

"Leveraging this newly secured standalone production hub, we will proactively respond to changing dynamics of the North American market," it added.

The two companies joined in 2021 to establish a localized battery supply chain for Ford's EV lineup. However, a cooling global EV market prompted them to realign the partnership.

SK On said that despite the restructuring, it will continue to work with Ford.

SK On is not publicly traded. The share price of its parent company, SK Innovation, rose 4.12% on the Seoul bourse Friday. The benchmark KOSPI gained 0.41%.

Copyright 2026 UPI News Corporation. All Rights Reserved.

This story was originally published May 22, 2026 at 7:15 AM.