South Korean battery maker SK On is ending its US joint venture with Ford Motor to refocus in the slowing electric vehicle market. Each company will take control of different parts of their jointly developed production facilities, with Ford taking over in Kentucky and SK On in Tennessee. The separation is expected to be completed by the first quarter of 2026.

The companies had a 2022 joint venture, BlueOval SK, with an $11.4bn investment in US battery manufacturing. Employee-related matters will be handled during the transition. SK On’s production start schedule for the Tennessee plant is uncertain at this time. The decision comes as SK On adjusts its business strategy due to weaker electric vehicle demand.

The new arrangement aims to streamline SK On’s operations and improve its operational efficiency. The company plans to focus on growth in the US by supplying electric vehicle batteries to Ford and other customers. Ford has also expressed caution about EV market trends, with CEO Jim Farley warning of a potential decline in sales following the expiration of a federal tax credit.

SK On supplies batteries to various automakers, including Hyundai, Kia, Volkswagen, Nissan, and US EV startup Slate. The decision to end the joint venture and split ownership of plants is part of SK On’s broader effort to strengthen its balance sheet and focus on profitability in a challenging market.

Read more at Yahoo Finance: SK On and Ford to end US battery JV, split ownership of plants