Ford and Nissan Collaborate on Battery Production Ford is allowing Nissan to utilize part of its underused Kentucky battery plant.

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Ford Motor Company is adjusting its electric vehicle (EV) strategy by permitting Nissan to utilize a portion of its underused battery plant in Kentucky. This move reflects broader challenges in the EV market, including fluctuating demand and rising production costs.

Ford Poured Billions Into Two EV Battery Plants. It's Only Using Part of One.


Background: Ford’s BlueOval SK Battery Park

In 2021, Ford, in partnership with South Korea’s SK On, announced a $5.8 billion investment to build the BlueOval SK Battery Park in Glendale, Kentucky. The facility comprises two battery plants intended to supply Ford’s North American assembly lines with batteries for next-generation electric Ford and Lincoln vehicles. The first plant is on track to commence production in 2025, while the second plant's construction has been delayed due to market uncertainties and cost considerations. 


Nissan’s Involvement

Facing its own challenges in the EV sector, including a $4.5 billion loss in the first quarter of 2025 and the cancellation of a planned battery plant in Japan, Nissan is seeking to leverage existing infrastructure to mitigate costs and reduce tariff exposure. The company has entered into an agreement with SK On to source batteries for its upcoming EVs in the U.S., with production slated to begin in 2028. 


Industry-Wide Implications

The collaboration between Ford and Nissan underscores the evolving dynamics of the EV industry, where automakers are reassessing investments amid shifting demand and financial pressures. Ford reported a $5 billion loss in its EV division in 2024 and anticipates similar losses in 2025. Other manufacturers, including General Motors and Honda, are also scaling back their EV and battery investments. 


Future Outlook

Despite current challenges, the BlueOval SK Battery Park remains a significant component of Ford's long-term electrification strategy. The facility is expected to create approximately 5,000 jobs and contribute to the production of batteries for Ford's future EV lineup. The partnership with Nissan may serve as a model for resource optimization and collaboration in the automotive industry.

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