Ford And SK On’s $11.4B Battery Empire Crumbles As EV Market Freezes

After four years of ambitious promises and splashy investment announcements, Ford and SK On‘s once-celebrated $11.4 billion battery joint venture has officially collapsed. SK On, a subsidiary of SK Innovation, made the dissolution announcement on Thursday. Guess that’s what happens when you bet the farm on EV projections that don’t quite pan out.

The partnership, initially formed with grandiose visions of battery factories in Tennessee and Kentucky, was supposed to be the backbone of Ford’s electric F-Series truck ambitions. The companies had planned three massive plants that would churn out next-generation batteries by 2025. They were so sure of success that SK On predicted a U.S. battery shortage until then. Oops.

Ford’s EV battery dreams looked like a sure bet until reality showed up and demanded a refund.

Despite the breakup, the factories will keep humming along. Ford is taking ownership of the twin Kentucky plants, while SK On gets to keep operating the massive BlueOval SK campus in Tennessee. This shift comes as the industry struggles with the higher initial investment required for renewable energy infrastructure compared to traditional fossil fuel operations. The partnership was established during a period of significant EV investment across the automotive industry. The two companies initially signed a memorandum of understanding for the joint venture to support Ford’s ambitious EV rollout plans in the U.S. The companies insist they’ll maintain a “strategic partnership” centered on the Tennessee operations. Corporate speak for “we’re not together anymore, but we’ll still text.”

The dissolution comes at a particularly awkward time for the EV market. After years of hype and billions in investments, reality has set in. Sales are up, sure, but nowhere near those lofty projections everyone was banking on. The end of federal tax credits hasn’t helped either.

Remember when EVs were the guaranteed future? When every automaker was tripping over themselves to announce battery factories? Those were the days. Now we’re witnessing the great EV recalibration.

What’s particularly telling is how both companies are spinning this as business as usual. The factories will operate! The partnership continues! Everything’s fine! But actions speak louder than press releases. An $11.4 billion joint venture doesn’t just dissolve because things are going swimmingly.

The EV market isn’t dead – it’s just freezing cold. And Ford and SK On just got frostbite.