Ford Motor Co.will lay off about 1,500 workers in Kentucky as it converts a ballyhooed plant in Hardin County from making batteries for electric vehicles to making batteries for a new energy storage business.
Ford on Monday also announced that it is taking a$19.5 billion writedown and canceling several electric vehicle models in the face of Trump administration policies and lackluster demand for electric vehicles.
In a press release,the company said the conversion of the Glendale plant,which began operations in August,would“serve the rapidly growing battery energy storage systems market”by leveraging“currently underutilized electric vehicle battery capacity to create a new,diversified and profitable revenue stream for Ford.”The company said it would invest$2 billion over two years to scale the energy storage business and deploy at least 20 gigawatt-hours annually of energy storage batteries by late 2027.
“Ford plans to produce LFP prismatic cells,battery energy storage system modules and 20-foot DC container systems at this facility.These systems are at the heart of the energy storage solution market for data centers,utilities,and large-scale industrial and commercial customers,”the company wrote in its press release.
The Louisville Courier-Journal reported that Ford executive Andrew Frick said the BlueOval SK battery plant is expected to lay off all of its approximately 1,500 employees in the near future,though the final date of employment has not been announced.The newspaper reported the retooled plant would employ 2,100 workers with some currently employed workers anticipated to reapply.
Workers at the battery plant had sought to unionize with the United Auto Workers,with the results of an union election held in August still being contested before the National Labor Relations Council.
Ford said production of a previously announced electric truck and universal electric vehicle platform to be built in Louisville continues to progress with production set to start in 2027.
The battery plant located on Interstate 65 in Glendale,was previously a joint venture between Ford and South Korea-based SK On.The companies announced last week they were ending the partnership.
Originally planned to be two plants with billions of dollars of cumulative investment,the companies announced in 2023 that the second plant would be indefinitely idled due in part to softening electric vehicle demand.
Republican lawmakers in the Kentucky legislature who represent Hardin County issued statements expressing both optimism and caution about the announced conversion.
State Reps.Samara Heavrin,R-Leitchfield,and Steve Bratcher,R-Elizabethtown,in a joint statement said their focus remained“on making sure the men and women whose jobs are impacted by this decision have the support and resources they need to find new employment and that going forward this new project delivers real,lasting investment and meaningful employment for the families and communities surrounding Glendale.”
“We are optimistic about Ford Motor Company’s decision to take over the Glendale facility and transition the project toward energy storage,particularly as initial plans for the project have faced significant challenges from the outset.At the same time,optimism must be matched with both caution and accountability,and we will be watching closely to ensure commitments are met and honored,”the two Republicans said in their statement.
State Sen.Matt Deneen,R-Elizabethtown,in a statement said there would be“short-term challenges”but that Ford’s investment in Glendale“underscores the company’s long-term commitment to this community.”
Democratic Kentucky Gov.Andy Beshear previously blamed Republicans in Washington for federal policies that jeopardized the EV battery plant.The One Big Beautiful Bill Act ended a$7,500 tax credit for the purchase of electric vehicles,and the Trump administration has targeted Biden administration regulations that sought to encourage the production of electric vehicles.
Beshear in a statement provided through a spokesperson said the state would remain“the EV battery capital of the U.S.because EV is—and will be—part of America’s future,despite the President’s shortsighted attacks on the industry.”He said the main focus was to find new jobs for impacted BlueOval employees.
He also said he remained confident in Ford and that he was in“direct contact”with the company’s leadership“to ensure the restructured project moves forward and is successful for both the company,Kentucky and our workforce.”
A Beshear spokesperson said the terms of the state’s incentive agreement with Ford were being renegotiated.Kentucky had offered$250 million in public monies for the BlueOval SK operation.
