Ford and SK On’s battery joint venture, BlueOval SK, has officially started production at its first plant in Glendale, Kentucky, marking a key step in the U.S. automaker’s push into domestic battery manufacturing. The facility will supply NMC batteries for the Ford F-150 Lightning and, later this year, the E-Transit electric van.
“We are proud to be producing batteries at our Kentucky 1 plant that will power the next generation of electric vehicles,” BlueOval SK CEO Michael Adams said, describing the start of production as a milestone for the company’s position in the EV battery market.
The Glendale site is one of two planned Kentucky factories, each designed with an annual capacity of 43 GWh. However, slower-than-expected EV adoption in the U.S. means Ford will not fully utilize the plants for its own vehicles. The company is reportedly seeking third-party customers, including other automakers and stationary energy storage companies, to absorb excess production.
Market pressures have intensified amid falling F-150 Lightning sales and the pending expiration of the U.S. EV tax credit at the end of September. Adams noted that BlueOval SK is adopting a cautious approach to production: “We are in an observation phase and are taking a conservative approach to ensure our safety. I think the market will continue to grow, but at a slower pace.”
Ford is also adjusting its EV strategy by focusing on smaller, more affordable models and planning the addition of LFP batteries alongside NMC cells. Construction has begun on a new LFP battery factory in Marshall, Michigan, using licensed technology from Chinese battery maker CATL. The facility, with a planned annual output of 20 GWh, is scheduled to begin production in 2026.
Financially, Ford’s Model e division has faced mounting losses, with a $1.3 billion deficit in the second quarter and projected annual losses of $5.5 billion for 2025. The automaker’s challenge remains offering competitively priced EVs while managing high production costs.