Ford Reportedly Slows EV Push, Lets Nissan Plug Into Kentucky Battery Plant Amid Demand Woes

Ford Motor Co. reduced its electric vehicle battery production operations to one of its Kentucky plants while keeping the second plant inactive, the Wall Street Journal reported, citing sources familiar with the matter.

The facilities developed through a $7 billion partnership with SK On were designed to expand Ford's ability to produce electric vehicles substantially.

Ford shares closed down 2.24% at $10.48 on Wednesday and edged up 0.1% to $10.49 in after-hours trading.

According to the report, the automaker is forced to rethink its strategy due to lower-than-expected EV demand and increasing costs.

The active Kentucky facility will produce batteries for Nissan Motor Co. against tariffs on imported vehicles and parts.

The U.S. Department of Energy granted the joint venture a $9.63 billion loan for constructing three battery production facilities in Kentucky and Tennessee. 

Ford has confirmed that Tennessee plant development plans have not deviated from their original course.

The move comes as automakers are dealing with faltering EV demand, high costs, and tariff pressures, which have caused companies such as General Motors and Honda to reduce their investments in electric vehicles.

Ford also faces a challenging landscape with Trump-era tariffs, which pose a significant obstacle, leading to $2.5 billion in costs for the company. 

Ford plans to recover $1 billion from its expenses through operational efficiency and cost reductions, but it still faces a substantial $1.5 billion expense in 2025. 

The stock has risen 8.6% so far in 2025.

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