Ford Motor Co. and a South Korean company, SK On, are ending their partnership in Kentucky and Tennessee.
Ford will own the battery manufacturing operation in Kentucky which began production earlier this year, while SK On will own a plant under construction in Tennessee. A second battery plant is planned in Kentucky though its construction has been pushed back.
Kentucky Democratic Gov. Andy Beshear said that the announcement was “at least good news for Kentucky.”
“Ford has been committed to Kentucky since the first Model-T rolled off the line in Louisville, and their commitment to our state and our workforce remains strong,” the governor said in his weekly press conference Thursday afternoon.
Beshear added that his administration was in contact with Ford to learn more about the direction the company hopes to take with the Kentucky battery plants. Later when asked about his confidence that both Kentucky plants would operate in the future, Beshear said, “I am confident that there will be activity in at least Kentucky one in our future. What that activity will be, whether it will take longer to ramp up, that we’ve all got to work through.”
The governor blamed Republicans at the federal level for policy changes that jeopardized the deal, saying that he was “still amazed that the president would push through such a job killing bill that cut subsidies and grants that companies and people had relied upon.”
Republican President Donald Trump has scrapped Biden administration policies aimed at moving Americans into electric vehicles, including fuel-efficiency standards. Trump’s One Big Beautiful Bill Act , passed by Congress this year, ends $7,500 tax credits for EV purchases.
EV sales have fallen since the tax credits ended.
Beshear also had words for Republican U.S. Rep. Brett Guthrie, of Kentucky’s 2nd District. Guthrie chairs the U.S. House Committee on Energy and Commerce.
“And it’s really disappointing that Brett Guthrie, who has three EV plants in his district, would be the one that champions it, pushes it through and doesn’t make any changes at all to protect those plants,” Beshear said. “So, if we have people that lose their jobs or jobs that are not created, your own congressman did it to you. That’s really, really wrong. Your governor is going to do his best — I’m going to do my best to make sure we have as many jobs at those facilities as possible.”
The partnership partnership breakup is expected to be completed in 2026.
More information on the news is expected to be shared by Ford early next week.
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The Kentucky Lantern is an independent, nonpartisan, free news service based in Frankfort.
