South Korean battery maker SK On and American auto giant Ford Motor Co. have agreed to end their joint U.S. battery factory venture, with the companies opting to independently operate their own facilities in the country.

CNBC reports that Ford will assume full ownership of the companies' two battery plants in Kentucky, while SK On will take over their yet-to-be-opened facility in Tennessee. SK On and Ford's now-defunct joint venture started in 2022, and included plans to spend more than $11 billion on three new U.S. battery factories and an assembly plant for electric pickup trucks. In 2024, the two companies also secured a $9.6 billion loan from the U.S. Department of Energy for the venture, although it's unclear how ending the partnership will impact that money.

Both companies have struggled financially in 2025, with SK On reporting an operating loss of 124.8 billion won ($84.72 million) in Q3, and Ford expecting to take a $1.5 billion hit from Trump administration tariffs by the end of the year. By ending the joint venture, SK On hopes to improve its operational flexibility and cut down on its fixed costs. The companies also plan to maintain a less formal strategic partnership at the Tennessee plant moving forward.