Splitsville For Ford An SK On: EV Battery Plans Go Up In Smoke

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The Intertubes practically erupted in flames on December 11 when word broke that the Ford Motor Company and the leading South Korean firm SK On abruptly dropped their EV battery manufacturing joint ventures in Kentucky and Tennessee. Although the breakup was reportedly mutual, Ford indicated that SK may have jumped the gun on a formal announcement. “We are aware of SK’s disclosure and we have nothing further to share at this time” was all the iconic US automaker had to say at the close of the business day on December 11.

EV Batteries From SK & Ford: How It Started …

For those of you new to the topic of EV batteries, the Kentucky connection may seem a mystery wrapped in an enigma. Kentucky is widely known as a showcase for the traditional industries that made America great: horse racing, booze, and tobacco. Nevertheless, Kentucky has also been building up its auto manufacturing profile. Ford, for example, has two longstanding operations in the state, the Louisville Assembly Plant and the Kentucky Truck Plant.

Under the EV-friendly umbrella of the Joe Biden administration, Ford added onto its footprint in both states, with the Kentucky venture being a particularly high-profile development. In 2021, Ford announced a partnership with SK to manufacture EV batteries at a new facility located in Glendale, Kentucky, under the name “BlueOval SK Battery Park,” in support of Ford’s ambitious new EV manufacturing campus in the adjacent state of Tennessee.

“With production expected to begin in 2025, the all-new $5.8 billion, 1,500-acre dedicated battery manufacturing complex – BlueOval SK Battery Park – will create approximately 5,000 new jobs and help strengthen the local community,” Ford enthused in a press statement dated September 29, 2021.

The company’s North America COO, Lisa Drake, also chipped in her two cents. “Ford is excited to make this historic investment in the commonwealth of Kentucky, a state that has been part of the Ford story since we rolled a Model T down an assembly line in Louisville in 1913,” Drake said in a press statement.

… How It’s Going …

In the same press announcement, Kentucky Governor Andy Beshear complimented Ford and SK for laying down the single biggest investment in state history. “It will transform our economy, creating a better Kentucky, with more opportunities, for our families for generations,” Beshear said.

“Never again will we be thought of as a fly over state. Our time is now. Our future is now,” he emphasized.

Gov. Beshear was equally enthusiastic in August of this year, when operations at the new battery campus commenced.

“Today, Kentucky marks a historic milestone four years in the making as production officially begins at two of the largest battery plants in the world, set to deliver EV batteries that will transform the automotive industry and the future of our commonwealth,” he cheered, again thanking SK On alongside Ford for the workforce opportunity.

Yeah, about that…. Another SK–Ford battery plant in Tennessee was also impacted by the breakup. Memphis Commercial Appeal reporter Corey Davis was among those getting the lowdown from SK. “Under the agreement, a Ford subsidiary will take full ownership of the battery plants in Kentucky, while SK On will have full ownership and operate the battery plant in Tennessee, according to a statement SK On issued Dec. 11,” Davis observed.

“Ford said it was aware of SK On’s disclosure and had nothing further to share,” Davis added.

While Ford had nothing further to share, Kentucky Public Radio reporter Joe Tonka was among those taking note of Gov. Beshear’s take on the matter. “In his Thursday press conference, Gov. Andy Beshear said Ford is expected to give more details about the future of the Kentucky plant early next week. He also expressed optimism about Ford retaining ownership, noting its long history in Kentucky,” Tonka wrote.

… And, Who’s Gonna Pay The Piper?

As reported by KPR, Gov. Beshear also took the opportunity to point out that elections have consequences. In July, the Republican-controlled Congress passed a new tax bill endorsed by US President Donald Trump, which put an end to the $7,500 federal EV tax credit as of September 30. The end of the tax credit is widely recognized as the single most significant factor causing a steep drop in EV sales after September 30, leading Ford and other EV makers to scale back their near-term manufacturing plans.

“Beshear addressed that bill Thursday, calling out President Donald Trump and Republican US Representative Brett Guthrie, whose district includes Glendale,” Tonka reported:

“I’m still amazed that the President would push through such a job-killing bill that cut subsidies and grants that companies and people had relied upon,” Beshear said. “And it’s really disappointing that Brett Guthrie, who has three EV plants in his district, would be the one that champions it, pushes it through and doesn’t make any changes at all to protect those plants.”

“So if we have people that lose their jobs, or jobs that are not created, your own congressman did it to you, and that’s really, really wrong. Your governor is going to do his best. I’m going to do my best to make sure we have as many jobs at those facilities as possible.”

To the surprise of nobody at all, Tonka further reported that Rep. Guthrie’s office failed to issue a timely response to an email request for a comment from KPR.

One state-level Republican elected representative did respond to the news, though he refrained from throwing stones at Rep. Guthrie. “Republican state Sen. Matt Deneen, whose district includes Glendale, said in a press release that he hopes Ford assumes full operational control and ‘remains committed to the long-term success of the Glendale plant,” Tonka reported.

As the saying goes, if wishes were horses, beggars would ride. If Senator Deneen really wants the Glendale plant to cling to life, he may want to actually do something other than blathering his hopes and dreams to whoever happens to be listening. At the very least, he could pick up the phone and bend the ear of Guthrie and the other Republican members of the Kentucky Congressional delegation, all of whom who voted in favor of the new tax bill — namely, Senators Paul Rand and Mitch McConnell, and House members James Comer, Andy Barr, Thomas Massie, Harold Rogers — and plead with them to fix what they have broken.

Photo: How it started, how it ended: Ford’s EV battery partnership with the South Korean firm SK On has suddenly gone up in smoke, impacting new manufacturing facilities in Kentucky and Tennessee (cropped, courtesy of Ford).