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Photo: SK Battery America (SKBA), the U.S. subsidiary of SK On. Courtesy of SK On. |
[Alpha Biz= Kim Jisun] SK On has completed the dissolution of its battery joint venture with Ford Motor Company, transitioning the Tennessee plant to a wholly owned operation under “SK On Tennessee.”
The move follows a December agreement to unwind the BlueOvalSK partnership, under which SK On took over the Tennessee facility while Ford assumed control of two Kentucky plants. The split comes amid slowing EV demand in North America and rising financial pressure on Ford.
SK On expects significant financial benefits from the restructuring, including a reduction of approximately KRW 5.4 trillion in debt and annual interest savings of about $180 million.
The company will also eliminate roughly KRW 330 billion in annual depreciation costs tied to the Kentucky plants, easing the burden on its consolidated financials.
The restructuring is expected to strengthen SK On’s balance sheet as it pivots to a more independent operational structure in the U.S. market.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
