On the Dash:
- EV supply chain restructuring signals continued volatility in production timing and long-term battery availability.
- Automaker-supplier realignments could shift cost structures and sourcing strategies across EV programs.
- Slowing EV demand is already impacting plant utilization, employment, and investment timelines.
SK On announced Thursday that its joint venture with Ford, BlueOval SK, has restructured its Tennessee battery plant into a standalone facility under full operational control, as the company works to adjust its U.S. footprint amid declining EV demand and mounting financial pressure.
Under the new structure, SK On will fully own and operate the Tennessee plant, now renamed SK On Tennessee. Separately, Ford will assume ownership and operations of the two Kentucky battery plants that previously operated under the joint venture.
The restructuring follows an agreement reached in December 2025 between SK On and Ford to end their three-year joint operation of BlueOval SK, intended to realign assets and production capacity in response to shifting market conditions.
SK On said the changes are intended to strengthen its financial structure and expand operational autonomy in the United States. The company expects the restructuring to reduce its debt burden by approximately 5.4 trillion won ($4 billion), with annual interest cost savings projected at about $180 million. Depreciation expenses tied to the Kentucky plants are expected to decline by roughly 330 billion won per year.
According to an SK On official, the company is dedicated to adapting to changes in the North American market by utilizing its newly established standalone production base.
