Ford Motor Co. and its South Korean partner SK On are seeking new buyers for surplus batteries produced at their new joint-venture factory in Kentucky, a move that reflects weakening electric vehicle (EV) demand in the United States. The plant, which officially began operations this week, was initially meant to supply Ford’s own EV lineup, but slower sales have forced the companies to broaden their strategy to include other automakers and energy storage firms, according to Bloomberg.

Ford and SK On Target New Battery Customers Beyond Lightning Pickup

The BlueOvalSK factory in Glendale, Kentucky, will remain a supplier for Ford’s F-150 Lightning pickup, but Michael Adams, CEO of the joint venture, confirmed the partners are now looking for external customers. Potential clients include both EV manufacturers and companies in stationary energy storage. Bloomberg previously reported that Nissan Motor Co. was in discussions to procure batteries, although no deal has been finalized.

“Both of our parents are looking for other opportunities for other new business,” Adams said in an interview, adding that the odds of securing new contracts are “fairly high.”

Market Slowdown Forces Adjustments in Production Plans

Ford’s battery oversupply stems from a marked decline in EV momentum. F-150 Lightning sales dropped 26% in the second quarter, and the outlook has become more challenging as federal policy shifts. Beginning September 30, the $7,500 U.S. federal tax credit for EV purchases will be eliminated under President Donald Trump’s $3.4 trillion fiscal package, making electric models less price-competitive.

Ford Ev Batteries Face Oversupply As Demand Slows In U.s. Market

Originally, Ford and SK On envisioned three large-scale battery factories in Kentucky and Tennessee, backed by a $9.2 billion U.S. Department of Energy loan in 2021. But the rollout has slowed. The Glendale facility will employ 1,450 workers—well below the 2,500 initially projected—and the companies have paused the launch of their second Kentucky plant. Meanwhile, Ford delayed its next-generation all-electric F-Series pickup launch to mid-2028, pushing the timeline for full production at its $5.6 billion Stanton, Tennessee, complex.

Shift in Battery Strategy: NMC vs. LFP

The BlueOvalSK plants are producing high-density Lithium Nickel Manganese Cobalt (NMC) batteries, widely used across the industry. However, Ford is tilting its EV strategy toward affordability, with plans to begin manufacturing lower-cost Lithium Iron Phosphate (LFP) batteries next year at a separate $3 billion facility in Marshall, Michigan. That plant is not part of the SK On joint venture.

Ford’s decision comes as it battles mounting financial pressure. The automaker reported a $5.1 billion EV-related loss in 2024 and has warned that the deficit could widen this year. CEO Jim Farley has stated that new electric models must be profitable in their first year of sales—a high bar given rising competition, slowing demand, and fading subsidies.

EVXL’s Take

Ford’s pivot underscores a growing challenge for legacy automakers: how to align large-scale battery investments with an unpredictable EV adoption curve. The decision to diversify BlueOvalSK’s customer base shows pragmatic flexibility, but it also raises deeper questions. If one of the industry’s biggest believers in electrification is throttling back, what does this mean for U.S. EV market momentum? And how will the loss of the federal tax credit reshape consumer buying behavior in the near term?

EVXL has tracked similar slowdowns among other automakers, suggesting Ford’s struggles are not isolated but part of a broader recalibration. Readers—do you see this slowdown as a short-term pause or a lasting reset in America’s EV transition? Share your perspective in the comments.

Photo credit EVXL.