Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
SK On, Ford to disband US joint venture
BlueOval SK's plant in Tennessee / Courtesy of SK On
By Park Jae-hyuk
SK On said Thursday it has agreed with Ford Motor to end their three-year joint operation of BlueOval SK, restructuring the U.S. battery manufacturing venture.
Under the agreement, each company will independently own and operate the joint venture’s production facilities. A Ford subsidiary will take full ownership of battery plants in Kentucky, while SK On will own and run the factory in Tennessee.
SK On said the decision is intended to strategically realign assets and production capacity to improve operational efficiency and respond more effectively to evolving market dynamics and diverse customer needs.
The Korean company added it will maintain a strong strategic relationship with Ford, as the Tennessee plant is located within the automaker’s BlueOval City campus.
“Taking ownership and control of the Tennessee plant will further strengthen SK On’s battery innovation and manufacturing leadership,” the company said in a press release.
“SK On plans to focus on profitable and sustainable growth in the U.S. by supplying electric vehicle batteries to Ford and other customers, as well as energy storage systems, from its Tennessee plant.”
The closing of the agreement is subject to customary regulatory approvals and other closing conditions. The procedure is expected to be completed by the first quarter of next year.