Ford and SK Innovation wind down BlueOval SK battery venture

Ford and South Korea's SK Innovation plan to wind down their BlueOval SK joint venture by 2026. Established in 2022 to produce batteries for electric vehicles, the partnership is ending due to sluggish growth in EV demand.

Ford representatives noted that the liquidation process awaits regulatory approval, with completion targeted for the first half of 2026.

Once the project closes, the BlueOval SK Battery Park facility in Kentucky will be repurposed. The plant is slated to become a battery manufacturing site for energy storage systems under the new Ford Energy brand. Ford estimates the conversion will cost around $2 billion. The company also faces additional financial hits: approximately $3 billion in 2025 and another $3 billion from 2026 to 2027.

SK Innovation reported a one-time loss tied to the joint venture's closure, estimated at about $2.6 billion. Ford will assume the assets and liabilities related to BlueOval SK's Kentucky operations.