Delay for BlueOval SK battery plants in Glendale gives locals time to deal with growth

GLENDALE, Ky. (WDRB) — For two years now, the small Hardin County community in and around Glendale has been bracing to receive Kentucky’s largest-ever economic development project: A pair of electric vehicle battery plants that are projected to employ 5,000 people.

But now, Hardin County residents are confronting the reality that the economic boom won’t arrive as quickly as projected.

Ford Motor Co. executives said Thursday that the company is delaying the start of production at the second of the two battery plants under construction in Glendale.

"Demand for electric vehicles continues to increase in the U.S. but not at levels anticipated. To meet demand and ensure our success, BlueOval SK Battery Park in Kentucky will postpone production at its second plant, known as Kentucky 2," said Ursula Madden, BlueOval SK external affairs director, in an emailed statement.

Gerald Lush, who owns Bennie's Barn Antique Mall, said he wasn't surprised by the news.

"I've never seen the demand for electric vehicles. The people we talk to when they come in here, very few of them are excited about buying an electric vehicle. That could change as time goes on as some of the infrastructure is put in place, like the charging stations people need and want," he said. "I wasn't surprised Ford evaluated that and realized there's not an immediate market for it. It's going to take a little time I think."

The first plant, known as Kentucky 1, is still on track to open with 2,500 employees in 2025. In fact, BlueOval SK, the joint venture between Ford and its Korean partner SK On, is already hiring for those jobs.

But the production start for the second plant, originally scheduled for 2026, is now uncertain. BlueOval SK will finish building it, but it’s unclear when the plant will start making batteries.

Lush said the delay could have a positive impact on the area.

"It might be a good thing for both Ford and the community because the infrastructure is not in place yet to handle 5,000 workers there. The roads are not ready to handle 5,000 cars in and out of there a day," Lush explained. "I'm thinking it's probably a good thing that Ford is kind of cutting the project in half and phasing in a little bit slower than what they originally talked about "

The region has already seen an influx in traffic just from construction vehicles and workers.

The Whistle Stop said while the traffic can be a nuisance, the construction has meant more business for the local restaurant.

"I didn't think the volume was going to be as high as it is. I thought it was going to be slow," said cook Quenton French. "The amount of cooking that we have pushed out, I mean just for this one company alone has been through the roof."

THE WHISTLE STOP IN GLENDALE, KENTUCKY — Staff at The Whistle Stop say construction of BlueOval SK Battery Park has led to more business for the restaurant. (WDRB Image)

French said staff at the restaurant have been working longer hours to help accommodate the increase in businesses during breakfast and lunch.

"I'm going to put my blood, sweat and tears into this place to show them I appreciate it," French said. "We were a little slower before so this is definitely going to blow the roof off this place, as it already has been."

The cook continued, "Without y'all there is no us, so we definitely appreciate every single person who comes in."

Across the railroad tracks, Lush is unsure what will happen to his business once production at the plants begin.

"That's kind of an unknown for people in my business, the antiques and collectibles business. We know there'll be a lot of commercial growth and there will be a lot more people living in this area, but we're not sure if that's good or bad for the antique store business because a lot of people come to Glendale because of the unique atmosphere they find here. It's a small, a lot of people refer to it as Mayberry-type town, and I'm not sure that's going to exist in four or five years," Lush questioned.

On Thursday, Ford Chief Financial Officer John Lawler told analysts that the company is “pushing out” about $12 billion in planned electric vehicle investments, including the operation of the second BlueOval plant.

“Given the dynamic EV environment, we are being judicious about our production and adjusting future capacity to better match market demand,” Lawler told analysts on the company’s quarterly earnings call.

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Delay for BlueOval SK battery plants in Glendale gives locals time to deal with growth