Louisville, December 16, 2025
Ford Motor Company has laid off all 1,600 employees at its Kentucky battery plant as part of a strategic shift away from electric vehicle production. This decision comes following a significant $19.5 billion writedown linked to declining EV demand and policy changes. Ford aims to focus on hybrids and extended-range vehicles, with a target of a 50% mix of hybrids and EVs by 2030. Concurrently, the company plans to repurpose the Kentucky facility for energy storage batteries, while workers at the plant push for union representation amidst poor working conditions.
Louisville, Kentucky – In a significant move that reflects the evolving dynamics of the automotive market, Ford Motor Company has laid off all 1,600 employees at its Kentucky battery plant. This strategic shift away from electric vehicle (EV) production is closely tied to a $19.5 billion writedown the company faced due to a decline in EV demand and recent policy changes. Rather than focusing on electric models, Ford plans to concentrate on hybrids and extended-range vehicles, targeting a 50% mix of hybrids and EVs by 2030, up from just 17% today.
The rationale behind the writedown includes various components, notably $8.5 billion from cancelled EV models, $6 billion stemming from the dissolution of a partnership with South Korean battery manufacturer SK On, and an additional $5 billion in program-related expenses. Ford’s strategic pivot has led to a raised earnings forecast for 2025, and the company intends to invest in affordable EV options, including a new $30,000 midsize truck expected in 2027. This shift mirrors a broader trend within the automotive industry, as competitors like General Motors and Stellantis also scale back their EV strategies amidst a notable 40% drop in U.S. EV sales and the conclusion of the longstanding $7,500 tax credit.
Prior to these layoffs, Ford and SK On collaborated on a joint venture to develop battery plants in the United States. With SK On now terminating the partnership, Ford will take full control of the Kentucky battery facilities and plans to repurpose them for energy storage batteries, expecting initial capacity within 18 months. The company’s plant in Marshall, Michigan, is also set to manufacture batteries supporting the new midsize EV truck.
In a separate development, workers at the Kentucky battery plant made headlines in January 2025 by filing for a union election with the United Auto Workers (UAW). This effort aims to address employee concerns regarding pay, benefits, and safety conditions at the plant, which has faced multiple complaints over mold, insect infestations, insufficient protective gear, and hazardous working environments. This growing momentum for unionization is evident throughout the EV battery sector, with similar efforts surfacing in plants across Ohio and Tennessee.
Ford’s decision to lay off its Kentucky battery plant workforce and pivot away from EV production not only underscores the complexities faced by automakers today but also highlights a shift in focus toward hybrids and extended-range vehicles, which are gaining traction as consumer preferences evolve.
FAQ
Why did Ford lay off all 1,600 Kentucky battery plant employees?
Ford laid off all 1,600 Kentucky battery plant employees as part of a strategic shift away from electric vehicle (EV) production, following a $19.5 billion writedown due to declining EV demand and policy changes under the Trump administration.
What is Ford’s new focus after the layoffs?
After the layoffs, Ford plans to focus on hybrid and extended-range vehicles, aiming for a 50% mix of hybrids and EVs by 2030, up from 17% today.
What is the status of the joint venture with SK On?
SK On announced it would end its partnership with Ford, leading to Ford taking full ownership of the Kentucky battery plants. Ford intends to repurpose these facilities to produce energy storage system batteries, with initial capacity expected within 18 months.
What were the workers at the Kentucky battery plant seeking?
In January 2025, workers at the Kentucky battery plant filed for a union election with the United Auto Workers (UAW), seeking to improve pay, benefits, and safety measures. The plant has faced worker complaints over issues including mold, bat infestations, lack of protective gear, fires, and exposure to dangerous chemicals.
Key Features
| Feature | Details |
|---|---|
| Number of Employees Laid Off | 1,600 |
| Amount of Writedown | $19.5 billion |
| Ford’s New Focus | Hybrid and extended-range vehicles |
| Joint Venture Status | SK On ended partnership; Ford took full ownership of Kentucky battery plants |
| Unionization Effort | Workers filed for UAW election in January 2025 |
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