Remember the electric vehicle (EV) frenzy of 2021? It was a time when Tesla’s sky-high valuation and the promise of a historic climate-focused spending bill (https://arstechnica.com/science/2022/07/whats-inside-the-uss-first-big-climate-bill/) had everyone convinced that an all-electric future was just around the corner. Automakers were all in, forming partnerships and laying the groundwork for a battery-powered revolution. But here’s where it gets controversial: what happens when the tide turns, and the once-certain future starts to look uncertain? That’s exactly what’s unfolding now, and Ford’s recent decision to end its joint venture with SK On is a glaring example.
Back then, Ford made headlines with its $11.4 billion partnership with SK to build two battery factories—one in Kentucky and one in Tennessee. Dubbed BlueOvalSK, the venture promised 11,000 jobs and a combined annual output of 60 GWh (https://arstechnica.com/cars/2021/09/ford-picks-kentucky-and-tennessee-for-11-4-billion-ev-investment/). It was a bold move, but fast forward to today, and the landscape has shifted dramatically. EV subsidies have dried up, and the current government shows little interest in holding automakers accountable for their reliance on gas-guzzlers. As a result, EV-centric plans are being shelved, and old combustion engine designs are making a surprising comeback. And this is the part most people miss: fewer EVs mean fewer batteries are needed, a reality underscored by Ford and SK On’s decision to dissolve their partnership.
The writing was on the wall. Ford began scaling back its EV ambitions in 2024, scrapping not one (https://arstechnica.com/cars/2024/02/ford-rethinks-ev-strategy-is-working-on-a-smaller-cheaper-ev-platform/) but two (https://arstechnica.com/cars/2024/08/ford-rethinks-ev-strategy-again-ditching-3-row-suvs-adding-vans/) EV strategies by August. Disappointing sales of the F-150 Lightning led Ford to postpone its fully electric replacement in Tennessee, opting instead for a smaller, cheaper midsize electric truck set to debut in 2027 (https://arstechnica.com/cars/2025/08/ford-bets-big-on-universal-ev-production-system-and-30k-truck/).
The breakup of the joint venture is straightforward: Ford’s subsidiary will take full control of Blue Oval City in Kentucky, while SK On will assume ownership of the Tennessee plant. According to Reuters (https://www.reuters.com/business/autos-transportation/south-koreas-sk-ford-motor-end-us-battery-joint-venture-2025-12-11/), SK On cited the declining prospects of EV sales in the U.S. as the reason for ending the partnership. Instead, it plans to pivot the Tennessee plant’s focus to the energy storage market.
Here’s the million-dollar question: Is this the beginning of the end for the EV revolution, or just a temporary setback? Some argue that the shift away from EVs is a reflection of market realities, while others see it as a missed opportunity to combat climate change. What do you think? Are automakers making the right call, or are they short-sighted in their return to combustion engines? Let’s spark a debate in the comments—I want to hear your take!
