Tennessee's BlueOval City Electric Vehicle Mass Production Delayed to 2026
Ramp-Up Process Needed to Improve Yield and Production Volume
On the 4th (local time), American automaker Ford announced a delay in the launch plans for some electric vehicles in the North American region. However, BlueOvalSK, the battery joint venture between SK On and Ford, stated that the existing production schedule is proceeding without any setbacks.
According to industry sources and foreign media on the 5th, Ford announced that it would postpone the delivery date of electric vehicles at BlueOval City, currently being developed in Stanton, Tennessee, from 2025 to 2026. BlueOval City is a comprehensive electric vehicle production complex being developed on a 15.53 million square meter site. It will house the BlueOvalSK battery plant, established by Ford and SK On, Ford’s electric vehicle plant, and various parts manufacturing facilities.
Ford stated, "Construction is underway at the BlueOval Battery Park plant in Marshall, Michigan, as well as the BlueOvalSK joint venture battery plants in Tennessee and Kentucky." Following Ford’s announcement, BlueOvalSK also released an official statement saying, "The Tennessee plant is scheduled to produce batteries in 2025 as planned, and the Kentucky Plant 1 will also begin mass production in 2025."
Although the electric vehicle delivery schedule has been delayed, the mass production timeline for BlueOvalSK’s plants will proceed as originally planned. Michael Adams, CEO of BlueOvalSK, sent an email to employees on the same day explaining, "Ford’s announcement of a delay in some electric vehicle production does not affect the mass production timeline of BlueOvalSK’s plants." He added, "The Tennessee plant and Kentucky Plant 1 are scheduled to begin mass production in 2025 as planned, and construction of Kentucky Plant 2 is also ongoing." CEO Adams also stated that the plan to hire approximately 2,500 employees per plant is proceeding without changes.
A battery industry insider said, "Since batteries can be produced and stocked before being installed in electric vehicles and require a ramp-up process, the battery mass production schedule is unlikely to change significantly."
However, the decline in electric vehicle demand and the resulting setbacks in electric vehicle production plans remain challenges for the battery industry. Earlier in January, Ford also announced a reduction in production of the electric pickup truck model, the 'F-150 Lightning.' The F-150 Lightning is equipped with SK On’s NCM9 batteries. Since the second half of last year, the electric vehicle market has been slowing down, prompting major automakers to adjust the pace of electrification.
Previously, in July 2022, SK On and Ford officially launched BlueOvalSK with a total investment of $11.4 billion. The two companies plan to build three battery plants in Glendale, Kentucky, and Stanton, Tennessee, with a production capacity of approximately 120 gigawatt-hours (GWh).
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