Ford Motor is reportedly allowing Nissan to utilize part of its underused battery manufacturing capacity in Kentucky, in a move that underscores the U.S. automaker’s ongoing retreat from its ambitious electric vehicle (EV) expansion plans, the Wall Street Journal reported on Thursday, citing people familiar with the matter.
The facility in question is part of BlueOval SK, a joint venture formed in 2022 between Ford and South Korean battery manufacturer SK On. The venture includes two factories in Glendale, Kentucky, each with a planned annual capacity of 43 gigawatt-hours (GWh) to support Ford’s EV lineup. While both plants have been completed, only one is currently active—and partially at that—with the second remaining idle.
The active plant is now expected to produce batteries for Nissan in addition to Ford, the report said. The shift enables Nissan to manufacture batteries within the United States, helping it mitigate risks from tariffs and qualify for domestic content requirements in EV production.
Ford’s decision to open its battery operations to a competitor reflects deeper struggles in the U.S. EV market. Despite tripling EV sales to 31,000 units in the last quarter, the automaker’s Model e division posted an $850 million operating loss. Ford has also reportedly halted the development of a new electronic/electric architecture for its future vehicles.
The backdrop to these developments includes slowing EV demand, rising production costs, and political headwinds. A Republican-led push to repeal the $7,500 federal EV tax credit and impose new tariffs could further dampen the outlook. “Ford bet on robust EV demand that hasn’t materialized,” the Wall Street Journal noted, adding that capacity across U.S. battery plants is increasingly going underutilized.
For Nissan, tapping into BlueOval SK’s capacity offers a timely solution. The Japanese automaker recently scrapped its battery plant project in Japan and posted a $4.5 billion loss for Q1 2025. It is also planning 20,000 job cuts and aims to shift some EV production to its facility in Canton, Mississippi, with battery supply from SK On.
Neither Ford, SK On, nor BlueOval SK have officially commented on the reported collaboration. The development comes amid broader pullbacks in the EV sector: General Motors has divested from a Michigan battery plant and Honda is pausing its planned Canadian EV facility while scaling down total investment in EVs and software from €61 billion to €43 billion.
