LOUISVILLE, Ky. (WDRB) — Kentucky is changing the terms of a $250 million taxpayer-funded incentive agreement tied to the battery plant in Glendale after the facility shut down just months after production began and laid off all 1,600 workers.
Employees at BlueOval SK produced electric vehicle batteries for about four months before the plant abruptly closed in December.
"I spent most of yesterday in tears because what am I gonna do," former employee Halee Hadfield said at the time. "I am the sole income for my household."
The closure sparked questions about the $250 million the state provided upfront through an interest-free forgivable loan.
Houston Howlett, whose family has farmed in Glendale for generations, previously questioned the investment after the shutdown.
"We need to hold those people accountable for what appears to be a major failure in the investment of a taxpayer dollar,"Â Howlett said.
Now, about half a year later, Ford Energy has taken full ownership of what was previously a joint venture between Ford and SK On. The company is retooling the plant to produce battery energy storage systems used for data centers and utility companies.
Ford Energy now pledges to create at least 2,100 jobs at the plant which is now called Ford Energy Systems.Â
WDRB obtained an updated agreement between Ford Energy and the state showing Kentucky also changed key job creation deadlines tied to the taxpayer-funded incentive package.
The original BlueOval SK agreement stated the state could demand repayment of the entire outstanding loan balance within 30 days if the project shut down for more than 90 days or was discontinued.
The state did not pursue repayment. WDRB asked state officials why but has not received a response.
Instead, the updated agreement extends job creation deadlines by two years.
Under the original agreement, BlueOval SK had to create 2,500 jobs by the end of 2026. Under the revised agreement, Ford has until 2028 to create 2,000 jobs.The 5,000 job benchmark timeline also changed.
