SK On has completed the restructuring of its battery joint venture with Ford, BlueOval SK, and converted the Tennessee plant in the United States into a standalone entity.
SK On said on the 21st that it converted the former BlueOval SK Tennessee plant into SK On Tennessee and began operating it independently.
With this restructuring, SK On will solely own and operate the Tennessee plant. In contrast, Ford will own and operate the two Kentucky plants that were under BlueOval SK.
With the termination of the joint venture structure, SK On expects its borrowing fund burden to decrease by about 5.4 trillion won. Considering the high interest rate environment, it expects an annual interest expense savings of about $180 million (about 270 billion won). The annual depreciation burden of about 330 billion won related to the Kentucky plants is also expected to decline.
An SK On official said the restructuring of the joint venture structure has strengthened its financial structure and improved the efficiency of production operations in the United States, adding that the company will actively respond to changes in the North American market based on the newly secured standalone production base.