LOUISVILLE, Ky. (WDRB) — Ford Motor Co. is delaying the start of production at one of its two adjacent electric vehicle battery plants in Hardin County, Kentucky, Ford executives told Wall Street analysts Thursday.
The company is extending $12 billion in planned electric vehicle investments, including a postponed Kentucky plant, amid uncertainty about demand for electric vehicles.
The twin plants in Glendale, Kentucky, are expected to employ 2,500 workers each. BlueOval SK, Ford’s joint venture with Korean partner SK On, has begun hiring for the first plant, which remains on track to begin production in 2025.
The second plant, known as Kentucky 2, was originally scheduled to become operational in 2026, but now Ford and SK On have no expected start of work on the second plant.
“Demand for electric vehicles continues to increase in the United States but not at the levels expected,” said Ursula Madden, BlueOval. “To meet demand and ensure our success, BlueOval SK Battery Park in Kentucky will postpone production at its second plant, known as Kentucky 2.” SK’s director of external affairs, in an emailed statement.
BlueOval SK will continue construction of Kentucky 2 “to ensure the safety of the construction site,” Madden said.
“Our ultimate goals have not changed, but the time needed to reach those goals has been adjusted,” Madden said.
This announcement does not affect BlueOval SK’s ongoing plant in Stanton, Tennessee, and like its counterpart in Kentucky, the Tennessee plant remains on track to begin production in 2025.
Ford remains committed to electric vehicles and will make significant progress with the second and third generations of electric vehicles that come to market in the next few years, Ford CEO Jim Farley said on the company’s earnings conference call.
The company currently sells three all-electric models, which it calls the “first generation” of its electric vehicle business. Those are the Mustang Mach-E and F-150 Lightning pickup trucks and the E-Transit work truck.
With the next generations of electric vehicles, “we have a completely different approach,” which will improve sales and profits, Farley said.
Ford recently backed away from its previously announced goals for electric vehicles, saying it was unsure when it would reach the goal of producing 2 million electric vehicles per year.
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