August 22, 2025

Ford and SK On Launch Battery Production at Kentucky Plant

News Summary

Ford Motor Co. and SK On Ltd. have started production at their joint venture BlueOval SK in the Kentucky 1 battery plant. This facility will manufacture batteries for the all-electric Ford F-150 Lightning and E-Transit van, aiming to enhance Ford’s EV supply chain while employing over 1,450 workers initially. However, the EV market faces challenges with declining sales and concerns regarding infrastructure and costs. Critics have raised issues regarding the rapid pace of EV policy changes and their impact on market readiness.

Kentucky – Ford Motor Co. and SK On Ltd. have officially commenced production at their joint venture, BlueOval SK, at the newly established Kentucky 1 battery plant located in Glendale. This facility is set to manufacture batteries specifically for the all-electric Ford F-150 Lightning and the E-Transit commercial vans, marking a significant step in Ford’s strategy to enhance its electric vehicle (EV) supply chain and decrease battery production costs.

The Kentucky 1 plant employs over 1,450 workers at launch, with aspirations to expand the workforce to 5,000 at full operational capacity. This milestone aligns with Ford’s vision of further integrating their EV operations, allowing for a more streamlined and efficient production process. However, the excitement around this launch comes amid a more extensive backdrop of challenges within the EV market.

Despite the opening of the new facility, the overall sales of electric vehicles in the United States have fallen below expectations. Factors contributing to this trend include consumer apprehensions regarding the costs associated with EVs, concerns about range limitations, and the current state of charging infrastructure in the country. As these issues loom, the impending expiration of the federal consumer tax credit for EV purchases in October has added further pressure to the market, along with discussions surrounding potential rollbacks on greenhouse gas emissions regulations established by the previous administration.

In the first seven months of this year, Ford’s overall EV sales have dropped nearly 10% compared to the same period last year. The Mustang Mach-E SUV experienced a modest increase in sales by 1%. However, both the F-150 Lightning and E-Transit have seen sharper declines, dropping 14% and a staggering 40% respectively. The financial performance of Ford’s Model e EV division has raised significant concerns, reporting a loss of $5.1 billion last year, with projections indicating similarly unfavorable outcomes continuing into 2025.

In a related development, the production at a second BlueOval SK facility in Tennessee has been delayed until 2027. Furthermore, the Kentucky plant is part of a larger $5.8 billion investment initiative aimed at positioning it as the largest EV battery plant globally once fully functional. A $2 billion investment is also being directed toward the Louisville Assembly Plant for the production of a new $30,000 midsize all-electric pickup. However, batteries for this vehicle will be sourced from Ford’s facility in Marshall, Michigan, rather than the Kentucky plant.

As production ramps up at the Kentucky 1 facility, it also comes at a crucial time, with workers preparing for a vote on unionization with the United Auto Workers on August 26-27. Amidst this, there have been allegations of an anti-union campaign orchestrated by both Ford and SK On, further complicating an already tense labor situation.

In addition to its immediate ambitions, BlueOval SK is exploring opportunities beyond Ford. The company is looking to broaden its customer base and has expressed interest in the energy storage market, aiming to operate as an independent entity while seeking new commercial partnerships.

Kentucky’s Governor, Andy Beshear, has acknowledged the importance of this investment for EV innovation and job creation within the state. Nonetheless, some critics, including local politicians, have voiced concerns that government policies may be advancing faster than the market’s readiness to support an extensive EV infrastructure, especially in rural areas where charging facilities may still be sparse.

The launch of production at the Kentucky 1 battery plant represents both progress for Ford’s EV strategy and an indicator of the hurdles that lie ahead in the evolving automotive landscape.

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Author: STAFF HERE CHATTANOOGA WRITER

The CHATTANOOGA STAFF WRITER represents the experienced team at HEREChattanooga.com, your go-to source for actionable local news and information in Chattanooga, Hamilton County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Riverbend Festival, Chattanooga Oktoberfest, and Moon River Festival. Our coverage extends to key organizations like the Chattanooga Area Chamber of Commerce and United Way of Greater Chattanooga, plus leading businesses in manufacturing, insurance, and utilities that power the local economy such as Volkswagen Chattanooga, BlueCross BlueShield of Tennessee, and EPB. As part of the broader HERE network, including HEREBristol.com, HEREKnoxville.com, HEREMemphis.com, and HERENashville.com, we provide comprehensive, credible insights into Tennessee's dynamic landscape.

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