News Summary
BlueOval SK, a joint venture between SK On and Ford, has announced that battery production at its Tennessee facility will be postponed until 2027. This delay aims to align with market conditions and customer demands. Meanwhile, the Kentucky plant has commenced production for the all-electric Ford F-150 Lightning. Ford is also facing production delays for other electric vehicles due to decreased demand, with additional investments planned to enhance the company’s electric vehicle capabilities.
Tennessee – BlueOval SK, the joint venture between SK On and Ford Motor Co., announced on August 19 that the commencement of battery production at its Tennessee facility, known as BlueOval City, will be postponed until 2027. This plant is intended to provide batteries for future electric vehicles (EVs) from both Ford and Lincoln.
The company emphasized that the adjustment to its production schedule is meant to align with customer needs and market conditions. Initially, some team members from BlueOval SK transitioned to the Tennessee plant in late March, although a specific start date for production remained uncertain.
Meanwhile, battery production has successfully started at BlueOval SK Battery Park’s Kentucky 1 plant, which will supply batteries for the all-electric Ford F-150 Lightning. BlueOval SK’s CEO noted that the launch of the Kentucky 1 facility marks a major milestone in the electric vehicle battery landscape.
However, Ford has encountered delays in production at its second battery facility in Kentucky due to a decrease in demand for electric vehicles. This production delay in Tennessee coincides with Ford’s announcement to delay mass production of new full-size electric trucks at BlueOval City until 2028, even though prototype builds are still scheduled for initiation in 2027. Additionally, production of the E-Transit van has been postponed from 2026 to 2028, with plans for assembly to take place at Ford’s Avon Lake, Ohio plant.
When first unveiled in September 2021, the BlueOval City facility was initially set to begin operations in 2025. The overall development of both BlueOval SK battery plants in Kentucky and Tennessee is expected to create 2,500 jobs each at full capacity. Currently, the Tennessee facility has hired around 1,200 employees, with 350 being local hires, making up approximately 88% of the workforce there.
Altogether, the BlueOval City campus, which includes the Tennessee Electric Vehicle Center and the BlueOval SK battery plant, is projected to generate roughly 6,000 jobs, serving as a significant boost to the economic development in one of the region’s most economically disadvantaged areas.
Despite the advancements in battery production, Ford’s electric vehicle sales have faced challenges, with a nearly 10% year-over-year decline through July. Notably, the Mustang Mach-E SUV experienced a slight increase of 1%, while the sales for the F-150 Lightning and E-Transit van saw declines of 14% and 40%, respectively. Last year, Ford’s Model e EV division reported a substantial loss of $5.1 billion and is predicted to continue facing financial hurdles moving forward.
In response to ongoing market challenges, BlueOval SK is exploring additional customers beyond Ford for its battery production and is looking to expand into the energy storage sector to diversify its offerings.
At the Kentucky site, employment has now reached over 1,450, with a goal of achieving 5,000 employees at full capacity. The second battery plant in Kentucky is still experiencing delays, further complicating the operational plans of the company. A vote regarding union membership with the United Auto Workers is expected to occur among employees at the Kentucky plant from August 26-27.
In addition to its strategic adjustments, Ford has announced a $2 billion investment in its Louisville Assembly Plant. This investment will support the production of a $30,000 midsize all-electric pickup truck, which will utilize batteries sourced from another Ford-owned plant in Michigan. This move underscores Ford’s commitment to profitable EV production and aims to optimize costs related to battery and materials logistics.
Furthermore, LG Energy Solution is also investing in expanding its Spring Hill, Tennessee plant to accommodate multiple battery chemistries for General Motors (GM). This reflects a broad trend in the industry towards adaptable battery production solutions to meet the evolving needs of the electric vehicle market.
Deeper Dive: News & Info About This Topic
- Commercial Appeal
- Detroit News
- Detroit Free Press
- Encyclopedia Britannica: Electric Vehicle
- WDRB News
- Google Search: Ford electric vehicle production 2025
Author: STAFF HERE BRISTOL WRITTER
The BRISTOL STAFF WRITER represents the experienced team at HEREBristol.com, your go-to source for actionable local news and information in Bristol, Sullivan County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Bristol Rhythm & Roots Reunion, NASCAR races at Bristol Motor Speedway, Border Bash concert series, and the Hot Bristol Night Car Show. Our coverage extends to key organizations like the Bristol Chamber of Commerce, Believe in Bristol, and the Birthplace of Country Music, plus leading businesses in healthcare, manufacturing, and entertainment that power the local economy such as Ballad Health, Strongwell, and Bristol Motor Speedway. As part of the broader HERE network, including HEREChattanooga.com, HEREKnoxville.com, HEREMemphis.com, and HERENashville.com, we provide comprehensive, credible insights into Tennessee's dynamic landscape.
