Ford and SK On are ending their joint venture to build battery factories, a move that reflects the changing landscape of the electric vehicle industry. The two companies had announced plans to create 11,000 jobs and produce 60 gigawatt-hours of batteries annually from the facilities in Kentucky and Tennessee.
However, with EV subsidies no longer available and automakers scaling back their electric vehicle offerings, the need for large-scale battery production has decreased significantly. Ford's decision to keep the Kentucky plant, which will now be owned by a subsidiary of the company, appears to make more sense geographically, as it is better located relative to other Ford manufacturing sites.
SK On, on the other hand, has decided to focus the Tennessee plant's output on energy storage systems rather than electric vehicles. The company's decision not to continue with the battery factory joint venture was likely due to declining prospects for EV sales in the US. Instead, SK On intends to produce energy storage system cells, which may involve different chemistries and production processes.
Industry experts believe that the capacity at the Kentucky plant could be redirected to producing lithium-iron-phosphate (LFP) cells, a chemistry used in some energy storage systems, rather than for electric vehicles. This would give Ford access to three different cell chemistries in the region, supporting plants in Kansas City, Louisville, Avon Lake Ohio, Dearborn, and Oakville.
As the electric vehicle industry continues to evolve, companies like Ford and SK On are adapting their strategies to focus on emerging opportunities rather than trying to keep up with declining demand.
However, with EV subsidies no longer available and automakers scaling back their electric vehicle offerings, the need for large-scale battery production has decreased significantly. Ford's decision to keep the Kentucky plant, which will now be owned by a subsidiary of the company, appears to make more sense geographically, as it is better located relative to other Ford manufacturing sites.
SK On, on the other hand, has decided to focus the Tennessee plant's output on energy storage systems rather than electric vehicles. The company's decision not to continue with the battery factory joint venture was likely due to declining prospects for EV sales in the US. Instead, SK On intends to produce energy storage system cells, which may involve different chemistries and production processes.
Industry experts believe that the capacity at the Kentucky plant could be redirected to producing lithium-iron-phosphate (LFP) cells, a chemistry used in some energy storage systems, rather than for electric vehicles. This would give Ford access to three different cell chemistries in the region, supporting plants in Kansas City, Louisville, Avon Lake Ohio, Dearborn, and Oakville.
As the electric vehicle industry continues to evolve, companies like Ford and SK On are adapting their strategies to focus on emerging opportunities rather than trying to keep up with declining demand.
, but it's good that they're finding new uses for the facilities. Ford making sense of things by keeping the Kentucky plant is a smart move, location-wise. SK On's energy storage system cells idea makes more sense too - all that talent and expertise can't be wasted 
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. Everyone's having to adapt to new realities, and it's not just about sticking with what you know. Companies are taking calculated risks and exploring other areas, like energy storage. It'll be interesting to see how that plays out in the long run 
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. I mean, who needs 11,000 jobs right? 
It's not like people are struggling or anything. And now Ford is just going to keep that Kentucky plant and SK On is just gonna focus on energy storage systems... what even is the point of that? 
Are they trying to make a quick buck off of us while everyone else suffers? I don't get it.
Like, what happened to all those promised jobs and benefits for the environment? It's just a bunch of corporations running out when things get tough. 
I'm not saying I have all the answers or anything, but come on, can't they see that we need these battery factories now more than ever? 
. And SK On's decision to pivot to energy storage systems is actually kinda cool 
. It's like, what happened? The whole point was to create 11k jobs and produce 60GWh of batteries a year, but now it seems that's not gonna happen anymore 
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. I mean, it's better located near their other manufacturing sites and all that jazz 
! I mean, 11,000 jobs and 60 gigawatt-hours of batteries - that's a huge investment. But now it looks like Ford's just gonna keep the Kentucky plant and SK On is focusing on energy storage systems? That makes total sense considering EV subs are no longer an option 
. i mean, who needs 11k jobs when demand is dropping? 
and btw, ford making sense by keeping the ky plant owned by a subsidiary makes total sense geographically 
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