Ford Lays Off 1600 Kentucky Workers as Electric Vehicle Strategy Collapses
Finn's Take· TL;DR- Ford laid off 1,600 Kentucky EV battery plant workers as it shifts focus from electric vehicles to energy storage systems due to slowing EV demand.
- The facility will now produce advanced battery energy storage for data centers and utilities, with plans to rehire 2,100 workers within 18 months.
- Ford has lost $13 billion on EVs since 2023 and canceled F-150 Lightning production; Kentucky is renegotiating its $250 million incentive agreement.
Mass Layoffs Hit Kentucky Battery Plant
Ford Motor Company announced Monday that all 1,600 employees at its electric vehicle battery plant in Glendale, Kentucky, will be laid off as the company repurposes the facility away from EV production . In a video statement sent to employees Monday, Michael Adams, CEO of BlueOval SK — the original joint venture between Ford and SK On — said this shift would lead to "the end of all BlueOval SK Positions in Kentucky" .
Adams didn't give a timeframe for those layoffs, though he said employees will have access to benefits and continue to receive paychecks for the next 60 days . The mass layoffs come just months after the first battery rolled off the assembly line in August of this year, made to power the all-electric Ford F-150 Lightning . But Ford canceled production on that truck in announcement Monday .
The announcement comes as South Korean battery maker SK On and Ford Motor Company dissolve their partnership, with Ford taking full ownership of BlueOval SK in Hardin County as demand for electric vehicles slows worldwide . According to the Wall Street Journal, Ford has lost about $13 billion on its EV business since 2023 .
Pivot to Energy Storage Business
The facility will now focus on producing advanced battery energy storage systems for data centers, utilities and large industrial customers . The Glendale facility will now manufacture 5 MWh+ advanced battery energy storage systems, with Ford planning to produce LFP prismatic cells, battery energy storage system modules and 20-foot DC container systems .
Ford plans to bring this new capacity online within 18 months . The company plans to deploy at least 20 gigawatt-hours annually by late 2027 as it seeks to gain market share in the growing U.S. energy storage sector . "This is a customer-driven shift to create a stronger, more resilient and more profitable Ford," Farley said in a news release Monday .
Ford plans to hire 2,100 employees for the new iteration of the Glendale plant, and a company spokesperson said Monday that all those laid off will have the "opportunity to apply" for those new jobs . However, this represents about 400 fewer jobs than were originally anticipated for just one of the two Glendale facilities, as the combined state's BlueOval SK facilities were expected to employ 5,000 people .
Political and Economic Fallout
The entire Hardin County project — originally marketed as a $5.8 billion investment in the burgeoning future of Ford's EV infrastructure — has taken a turn in response to lacking consumer demand . Farley has recently said they planned for too much EV capacity and needed to pull back in response to rollbacks of strict emission rules by President Donald Trump's administration .
Last week, Gov. Andy Beshear partially blamed President Donald Trump's "Big, Beautiful Bill" for the decline in EV demand, citing the bill's cuts to tax cuts that supported EV purchases and infrastructure . Kentucky had offered $250 million in public monies for the BlueOval SK operation , and a Beshear spokesperson said the terms of the state's incentive agreement with Ford were being renegotiated .
Republican Kentucky House members Samara Heavrin and Steve Bratcher said they remain focused on those workers who could lose their jobs, stating they are "optimistic about Ford Motor Company's decision to take over the Glendale facility," but that "optimism must be matched with both caution and accountability, and we will be watching closely to ensure commitments are met and honored" .
Looking Ahead
The dramatic shift at the Glendale plant reflects broader struggles in America's electric vehicle industry. What was once heralded as the future of automotive manufacturing has become a cautionary tale of overinvestment and changing market conditions. For the 1,600 workers facing unemployment, the promise of future jobs in energy storage offers hope, but the transition period brings immediate uncertainty.
The success of Ford's pivot will depend largely on whether the rapidly growing data center and energy storage markets can sustain the employment levels Kentucky officials were promised. With artificial intelligence driving unprecedented demand for data centers, Ford may have found a more stable market than the volatile EV sector that prompted this costly restructuring.