LOUISVILLE, Ky. (WDRB) — Ford Motor Co. is delaying start of production at one of its two side-by-side electric vehicle battery plants in Hardin County, Kentucky, Ford executives told Wall Street analysts on Thursday.
The company is stretching out $12 billion of planned EV investments, including the delayed Kentucky plant, amid uncertainty about demand for EVs.
The dual plants in Glendale, Ky. are each projected to employ 2,500 workers. BlueOval SK, Ford's joint venture with Korean partner SK On, has begun hiring for the first plant, which is still on track to start production in 2025.
The second plant, known as Kentucky 2, was originally scheduled to come online in 2026, but now Ford and SK On have no projected start of work at the second plant.
"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.
Madden said BlueOval SK will continue building Kentucky 2 "to ensure the construction site is safe."
"Our ultimate goals have not changed, but the time to reach those goals has been revised," Madden said.
The announcement does not affect the BlueOval SK plant underway in Stanton, Tenn. Like its Kentucky counterpart, the Tennessee plant remains on track to start production in 2025.
Ford CEO Jim Farley said on the company’s earnings call that Ford is still committed to electric vehicles and will make significant progress with its second- and third-generation EVs that will come to the market in the next several years.
The company currently sells three all-electric models, which it calls the "first generation" of its EV business. Those are the Mustang Mach-E, F-150 Lightning pickup and E-Transit work van.
With the future generations of EVs, "We have a totally different approach," that will improve sales and profits, Farley said.
Ford recently backed off its previously communicated targets for EVs, saying it is unsure when it will reach a goal of producing 2 million EVs annually.
Related Stories:
