Ford Motor Co. has announced a delay in the start of production at one of its electric vehicle battery plants in Kentucky. The company is extending its planned investment of $12 billion in electric vehicles (EVs) due to uncertainty about the demand for EVs. The Glendale plants in Kentucky, which are expected to employ 2,500 workers each, are part of Ford’s joint venture with Korean partner SK On, called BlueOval SK. While hiring has begun for the first plant, which is set to start production in 2025 as originally planned, there is no projected start date for work at the second plant, known as Kentucky 2.
Ursula Madden, the director of external affairs for BlueOval SK, stated that the decision to postpone production at Kentucky 2 was made in response to the increased demand for EVs not meeting the anticipated levels in the US. However, Madden reassured that the construction of Kentucky 2 will continue to ensure a safe construction site. The announcement does not impact the ongoing construction of the BlueOval SK plant in Tennessee, which remains on schedule to begin production in 2025.
Despite the delay, Ford CEO Jim Farley emphasized the company’s commitment to electric vehicles and stated their intention to make significant progress with second- and third-generation EVs in the coming years. Ford currently sells three all-electric models, labeled as the “first generation” of their EV business. These models are the Mustang Mach-E, F-150 Lightning pickup, and E-Transit work van. Farley expressed confidence that future generations of EVs will improve sales and profits, signaling a change in approach for Ford’s EV strategy.