BlueOval SK’s plant in Tennessee / Courtesy of SK On
SK On mentioned Thursday it has agreed with Ford Motor to finish their three-year joint operation of BlueOval SK, restructuring the U.S. battery manufacturing enterprise.
Below the settlement, every firm will independently personal and function the three way partnership’s manufacturing amenities. A Ford subsidiary will take full possession of battery vegetation in Kentucky, whereas SK On will personal and run the manufacturing unit in Tennessee.
SK On mentioned the choice is meant to strategically realign property and manufacturing capability to enhance operational effectivity and reply extra successfully to evolving market dynamics and numerous buyer wants.
The Korean firm added it’ll preserve a powerful strategic relationship with Ford, because the Tennessee plant is situated throughout the automaker’s BlueOval Metropolis campus.
“Taking possession and management of the Tennessee plant will additional strengthen SK On’s battery innovation and manufacturing management,” the corporate mentioned in a press launch.
“SK On plans to give attention to worthwhile and sustainable development within the U.S. by supplying electrical automobile batteries to Ford and different prospects, in addition to vitality storage techniques, from its Tennessee plant.”
The closing of the settlement is topic to customary regulatory approvals and different closing circumstances. The process is anticipated to be accomplished by the primary quarter of subsequent yr.
