LOUISVILLE, Ky. — More than four years after partnering with Ford to build two of Kentucky’s largest electric vehicle battery factories, South Korea’s SK On announced it will end its joint venture with the automaker.
Investors and advocates are now questioning the future of the plants as Ford assumes full responsibility for operations.
Employees at BlueOval SK are processing the news with mixed feelings. Hadlee Hadfield, an employee, shared, “I’m kind of right on the fence with it. Honestly, I’m kind of anxious about the idea, ‘Oh no, what if this job goes away,’ because for me, this is the most money I’ve ever made on an hourly basis. And BlueOval SK really is one of the highest-paying employers in Hardin County, where I live.”
Gov. Andy Beshear, D-Ky., said Thursday he is working with Ford to understand the next steps. Ford will now take full control of the two Kentucky battery factories, while SK On will oversee an EV plant in Tennessee.
Abhilasha Bhola, an auto supply chain manager for the nonprofit advocacy group Public Citizen, expressed concerns about the move’s climate impact. “It seems like Ford is probably going to be cutting back on some of its commitments toward electric vehicles, which is incredibly a real problem for our climate,” Bhola said. “But it also means they have a real opportunity to sit down with the union and negotiate a strong contract for the workers that are still there.”
Ford initially announced a $5.8 billion investment in the Kentucky battery plants in September 2021, and production at the BlueOval SK battery park began this August.
Aaron Acosta, program director for Investor Advocates For Social Justice, emphasized the need for clear communication and collective bargaining. “There’s a real opportunity here in the Kentucky plant for Ford to demonstrate its leadership. Our demand remains the same: for Ford to recognize the bargaining unit and bargain in good faith, expeditiously and with the goal of reaching an actual agreement with workers,” Acosta said.
Workers at the plant announced plans to unionize in November 2024 and filed for an election in January 2025. They are now awaiting the National Labor Relations Board’s decision.
Julia Finch, spokesperson for the Kentucky chapter of the Sierra Club, urged Ford to negotiate with UAW workers in good faith.
Neither BlueOval SK nor Ford have provided further comment on SK On’s exit.
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