Ford to Share Battery Plant With Nissan as Part of EV Shift

Ford Motor Company (NYSE:F) appears to be scaling back its once-bold electric vehicle (EV) ambitions, with recent developments pointing to a more cautious and cost-conscious strategy.

Sources familiar with the matter say Ford is expected to let Nissan use part of its Kentucky battery plant, which is a surprising move that reflects the company’s ongoing reassessment of its aggressive EV expansion strategy.

The facility, built as part of a $7 billion initiative announced in 2021 alongside South Korea’s SK On, was meant to be a cornerstone of Ford’s electric vehicle ambitions. But so far, only one of the two plants is partially operating, while the other sits idle. Now, the active site is likely to produce batteries not just for Ford, but also for Nissan, indicating a shift from exclusive internal use to a more open, revenue-generating model.

This change comes as Ford Motor Company (NYSE:F) steps back from earlier EV plans. In early 2024, the company said it was rethinking its approach, including whether it still needed to make batteries in-house. It has already delayed or scaled back $12 billion in EV spending, citing rising costs, softening demand, and uncertainty over tariffs.

Ford Motor Company (NYSE:F)'s EV unit posted a $5 billion loss in 2024 and is bracing for another $5 billion hit this year. The company recently withdrew its full-year financial guidance, again pointing to concerns over tariffs as a key factor.

A Ford spokeswoman redirected questions regarding the Kentucky battery facility to its BlueOval SK joint venture. Meanwhile, a representative from the venture chose not to comment on the possibility of Nissan becoming a client.

Although Ford Motor Company (NYSE:F) hasn’t officially confirmed Nissan’s involvement, the deal could work to both companies' advantage. For Nissan, using a U.S. plant helps reduce exposure to import tariffs and supply chain disruptions, at a time when it's also under pressure, having posted a $4.5 billion loss in the first quarter of 2025.

F has surged by nearly 9% in 2025 so far.

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