Ford Motor(US:F) Benzinga·2025-12-11 10:57Core Insights - Ford Motor Co. and SK On have decided to terminate their EV battery manufacturing partnership due to challenges in the electric vehicle market, including regulatory changes and declining demand [1][2][3] Company Developments - SK On will shift its focus towards Energy Storage Systems and has announced changes in ownership of the battery plants, with Ford taking full ownership of the Kentucky plant and SK On assuming control of the Tennessee plant [2][3] - The partnership, known as BlueOval SK, had involved significant investments, totaling approximately $11.4 billion, primarily for the $5 billion Kentucky plant, which was producing batteries for the F-150 Lightning EV Pickup Truck [4] Market Context - The decision to end the partnership aligns with a broader strategy to reduce debt and enhance profitability, as SK On has reported multi-million dollar losses amid falling EV demand [3] - Ford's EV sales have seen a drastic decline, with a reported 60% drop in November, raising concerns about the viability of ongoing EV projects [4] Regulatory Environment - Recent regulatory changes, including the rollback of Corporate Average Fuel Economy (CAFE) Standards by President Trump, have contributed to the challenges faced by the EV sector [5] - Ford's CEO, Jim Farley, has expressed a commitment to EVs despite these challenges, emphasizing the importance of remaining competitive in the global market [6]