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Future of Kentucky's major EV battery plants evolving as key partnership shows cracks

BlueOval SK Battery Park
BlueOval SK
/
WUKY
BlueOval SK Battery Park

Ford Motor and South Korea’s SK Innovation Co. are ending their U.S. battery-making partnership, leaving a host of questions about the status of the two giant battery factories enabled by that venture in Kentucky.

You could change policy going forward, but you didn't pull the rug out from under people.
Gov. Andy Beshear

The collaboration behind the celebrated factories — which became a centerpiece of Gov. Andy Beshear's push to turn Kentucky into the "EV Capital of the U.S." — is now fracturing. Beshear told reporters Thursday what's known at this point.

"The news this morning is that Ford will be taking over control and operations of each of the Kentucky battery plants while SK will be taking over the Tennessee battery plants," he announced.

While Beshear said that news was reason for optimism, citing Ford's longstanding commitment to Kentucky, the governor expressed frustration with the shift in posture toward EVs in Washington with the July passage of the GOP tax and spending bill.

"I'm 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," he said. "That didn't happen in the past. You could change policy going forward, but you didn't pull the rug out from under people."

EV sales have risen in recent years but not at the pace car-makers had projected.

As for whether the Kentucky plants will continue their original focus, Beshear said it's too early to say, but more information from Ford is expected early next week.