Ford Considers Offloading Excess Battery Capacity As EV Market Weakens: Report

Ford Motor Co. (F) is reportedly considering offloading excess battery manufacturing capacity at its new joint-venture Kentucky factory, built in partnership with South Korea’s SK Innovation Co., as demand for electric vehicles weakens in the U.S.

According to a Bloomberg report, BlueOvalSK CEO Michael Adams said potential customers could include other electric vehicle makers and firms in the energy storage business. BlueOvalSK is the joint venture between Ford and SK Innovation.

Ford shares traded 2% higher in Tuesday’s morning session. Retail sentiment on Stocktwits around the company was in the ‘extremely bearish’ territory.

Adams described the chances of Ford and SK Innovation finding new customers for their excess battery capacity as “fairly high” in the Bloomberg interview. “Both of our parents are looking for other opportunities for other new business,” Adams said.

The Kentucky factory is the first among Ford and SK’s planned three factories, and the challenges the two companies are facing in fully utilizing the capacity points lead to a slowdown in EV demand in the U.S. The two companies predicted that the Kentucky facility would employ 2,500 workers, but this has come down to 1,450, according to the report.

During Ford’s second-quarter (Q2) earnings, the Dearborn-based car maker reported that its EV sales plummeted more than 31% during the period, held back by a pause in Mustang Mach-E model sales due to a safety flaw. The company also pushed back the production of the F-Series pickup truck from late 2027 to mid-2028.

F stock is up 18% year-to-date and 9% in the past 12 months.

Also See: Scott Bessent Says Interviews Of Potential Fed Chair Candidates Will Likely Begin After Labor Day: ‘It’s An Incredible Group’

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