Ford partnered with SK On to form BlueOval SK and invested billions in U.S. battery production, including plants in Tennessee and Kentucky. Planned capacity at those facilities will exceed Ford's projected EV cell needs, producing substantial excess inventory. BlueOval SK is considering selling surplus cells to other automakers, grid storage providers and corporate customers as a standalone revenue stream. The venture received a $9.2 billion U.S. loan to support construction. The Tennessee plant is slated to open in 2027. BlueOval SK leadership says they are monitoring demand and cautioned that Ford's EV production may not grow as initially projected.
Ford's business model has been largely the same for more than a century: build a car, sell the car, rinse and repeat. Now, in the age of the electric car, things are a bit more complicated-there are software-defined cars that make after-sale subscriptions possible, corporate fleets and a potential new avenue of selling the batteries that power the EVs and hybrids that roam America's streets.
According to a new report from , Ford's battery joint venture, BlueOval SK (a tie-up between Ford and SK On), is considering turning its sprawling battery investments into a standalone revenue stream. That means taking the excess capacity produced in its factories and selling them off to other automakers, grid storage providers and anybody with a big enough checkbook. Basically, Ford is becoming America's hookup for domestically-produced batteries.
"Both of our parents are looking for other opportunities for other new business," said BlueOval SK CEO, Michael Adams, in an interview with . He went on to note that the Ford-backed JV still plans on opening the doors to its new Tennessee plant in 2027, but cautioned that production of Ford's EV production may not grow at the rate the company initially projected.
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