SK On Tennessee takes control of battery plant in Stanton as joint venture with Ford dissolves

A subsidiary of South Korean battery manufacturer SK On took full ownership of the battery plant at BlueOval City in Stanton Thursday, marking an end to the company’s joint U.S. battery factory venture with Ford Motor Company.

The 4-million-square-foot West Tennessee battery plant located on Ford’s campus is now owned and operated by the newly formed SK On Tennessee. A Ford subsidiary took full ownership of two Kentucky battery plants in the split.

The new company will maintain a “strategic partnership” with Ford and “looks forward to supplying batteries for its future electrified vehicles,” SK On Tennessee spokesperson Keli McAlister wrote in an email Friday. SK On Tennessee plans to produce automotive and energy storage systems at the plant starting in 2028. 

Representatives for Ford did not respond to requests for comment.

SK On first announced plans to dissolve the partnership in December.

“We are now entering a period of focused growth and purposeful transformation,” SK On Tennessee CEO Michael Adams stated on the newly formed subsidiary’s website. “We can now move faster, make decisions more quickly, and align every investment, innovation, and operational priority around a singular vision — building world-class battery technology that powers the future of mobility and energy.”

Ford, SK On plan to end BlueOval SK joint venture; SK On will operate Tennessee battery plant

Ford and SK On formed BlueOval SK in 2021, investing a combined $11.4 billion to build three battery plants: two in Kentucky and one at Ford’s rural West Tennessee manufacturing campus.

The 6-square-mile BlueOval City campus in Stanton includes a Ford manufacturing facility alongside the battery production plant. SK On Tennessee is a tenant on the property.

“SK On Tennessee will build upon the strong foundation and skilled workforce developed over the past three years while positioning itself to compete more effectively in the rapidly evolving battery energy storage and electric vehicle markets,” according to an SK On Tennessee news release.

Ford initially planned to produce next-generation electric pickup trucks at the $5.6 billion manufacturing hub. After several production delays, Ford scrapped its electric plans and announced it would begin manufacturing gas-powered pickup trucks at the renamed Tennessee Truck Plant in 2029. 

The automaker cited “lower-than-expected demand, high costs and regulatory changes” as reasons for the switch in a December news release.

Ford is retooling a battery plant in Hardin County, Kentucky to make batteries for energy storage instead of electric vehicles, the company announced in December. The announcement brought layoffs for the roughly 1,500 workers at the Kentucky facility, intended to conclude by the end of March, according to documents filed with the Kentucky Career Center.

BlueOval SK announced in March that it would lay off 150 employees — about half of its workforce — from the plant by May 5 as the joint venture company prepared to dissolve.

All remaining BlueOval SK team members are now employees of SK On Tennessee, spokesperson Keli McAlister confirmed Friday. SK On Tennessee currently employs a core team of 100 people, McAlister said.