Ford and SK On are ending their joint battery venture in the US

Four years ago, Ford and South Korean battery manufacturer SK On struck a deal to form a joint venture and Spending $11.4 billion To build factories in Tennessee and Kentucky to produce batteries for the next generation of F-Series electric trucks.

Factories live. The joint venture will not.

SK On, a subsidiary of SK Innovation, said Thursday it had reached an agreement with Ford to end the joint venture. The two companies will split the assets: Ford will own and operate the twin battery plants in Kentucky, while SK On will operate the plant at SK’s massive BlueOval campus in Tennessee.

SK On said it will maintain a strategic partnership with Ford centered around the Tennessee plant, According to Bloomberg.

When reached for comment, a Ford spokesperson told TechCrunch that the company was aware of SK’s disclosure and had nothing further to share at this time.

The joint venture was created when the industry was investing billions of dollars to increase production of electric vehicles. Although electric vehicle sales have been on the rise over the past few years, demand has not kept pace with the industry’s high expectations. The expiration of the federal tax credit on electric vehicles also dampened the pace of sales.