South Korean EV battery manufacturer SK On Company has confirmed that it has completed the restructuring of BlueOval SK, its US-based battery manufacturing joint venture with Ford Motor Company, by taking full control of the plant in the US state of Tennessee. This follows an agreement signed in December 2025 by the two partners to end their three-year-old partnership.
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Blue Oval SK was established in 2022, after the US government under the previous Biden administration introduced tax incentives to encourage the purchase of battery electric vehicles (BEVs), but these were withdrawn by the Trump administration in September last year. The resulting fall in demand has prompted many global automakers to significantly scale back their BEV manufacturing plans in the US.
SK On confirmed that its renamed ‘SK On Tennessee’ plant has begun operating as a fully independent facility. Ownership of the two other battery plants under the joint venture, located in Kentucky, has been transferred to Ford.
SK On said that the dissolution of BlueOval SK will help strengthen its financial position by giving it operational autonomy over its US manufacturing operations, allowing it to target a broader customer base including the energy storage systems sector. The company said it expects the termination of the joint venture will allow it to reduce its debt burden by KRW 5.4 trillion won (US$ 3.6 billion), resulting in annual interest cost savings relating to investment depreciation costs.
An SK On spokesperson said in a statement: “Through this restructuring of the joint venture structure, we have strengthened our financial structure and improved the efficiency of our US operations. We will actively respond to changes in the North American market based on our newly secured standalone production base.”
