Quick Takeaways
- Ford Energy BESS plans signal a strategic shift as Ford repurposes its Kentucky battery facility for large-scale energy storage production.
- The move includes state-backed investment obligations and efforts to secure a buyer for the second unused plant.
While Ford takes over and retools the BlueOval SK Battery Park in Glendale, Kentucky for LFP battery production focused on battery energy storage solutions, the output will be marketed through a newly formed subsidiary named Ford Energy. The initiative highlights Ford Energy BESS ambitions as the company sharpens its focus on stationary energy storage markets.
Annual repayments linked to this loan were previously scheduled to commence in March 2027. As a result, Ford must either secure a new investor for the Kentucky 2 facility or directly assume repayment obligations tied to the agreement.
Meanwhile, SK On has taken control of the Tennessee site that was part of the former joint venture, repurposing it for its independent manufacturing operations. This move effectively separates the production strategies of the two partners.
Ford noted in a previous statement "The incentive commitments are intended to be assumed by the Ford subsidiary that will own and operate the plant. We don't anticipate changes to the agreement.”
Ford Energy BESS Strategy and Kentucky Plant Utilization
Ford Energy plans to operate only one of the two manufacturing units at the Kentucky site. The second facility, spanning approximately 4,250,000 square feet on a 600-acre campus, is currently not part of the active production roadmap. The company is coordinating with state authorities to identify a suitable buyer.State Support and Economic Development Outlook
According to local media reports dated February 4, Jeff Noel, secretary of the Kentucky Cabinet for Economic Development, confirmed that the unused plant will be promoted as a fresh economic development opportunity. The objective is to attract new investors while generating employment and long-term industrial activity in the region.Financial Commitments and Transition from the Joint Venture
Noel further stated that Ford will take full responsibility for the USD 250 million forgivable loan originally awarded to BlueOval SK by the state of Kentucky. The incentive package included strict conditions related to capital investment levels, workforce hiring, and wage benchmarks.Annual repayments linked to this loan were previously scheduled to commence in March 2027. As a result, Ford must either secure a new investor for the Kentucky 2 facility or directly assume repayment obligations tied to the agreement.
Meanwhile, SK On has taken control of the Tennessee site that was part of the former joint venture, repurposing it for its independent manufacturing operations. This move effectively separates the production strategies of the two partners.
Ford noted in a previous statement "The incentive commitments are intended to be assumed by the Ford subsidiary that will own and operate the plant. We don't anticipate changes to the agreement.”
Company Press Release
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