kynny/iStock via Getty Images
Ford Motor (NYSE:F) will let Nissan (OTCPK:NSANY) use part of its battery plant in Kentucky, people familiar with the matter told The Wall Street Journal, as the Detroit automaker further scales back its electric vehicle plans.
Ford (NYSE:F) has two EV battery manufacturing plants in Kentucky as part of a joint venture with South Korean battery maker SK On. One of the factories is not in use, and only a portion of the other plant is producing batteries for Ford.
The active plant will now make batteries for Nissan (OTCPK:NSANY) too, according to the report. This could help the Japanese automaker reduce some exposure to U.S. tariffs on imported cars and auto parts.
Ford (NYSE:F), which began revising its EV strategy last year, lost $5B on its EV business in 2024 and in February forecast a $5B loss for 2025. Earlier this month, it suspended its 2025 guidance due to tariff uncertainty.
In March, Nissan (OTCPK:NSANY) announced that SK On will supply U.S.-made batteries for its EVs. An SK On spokesperson told WSJ that the company has yet to decide where the batteries will be manufactured in the U.S.
Automakers have been facing weak EV demand and higher costs, forcing them to pull back. General Motors (GM) recently sold its stake in a battery plant being constructed in Michigan to its Korean partner LG Energy Solution.
GM’s (GM) Tennessee battery factory is running at around 40% of its planned capacity, while its Ohio plant is about 80% used.