All 1,600 employees at Ford’s newly built electric vehicle battery plant in Glendale, Kentucky, will be laid off as the automaker abandons its original EV battery plans and shifts the facility toward producing battery storage systems for data centers, utilities, and renewable energy projects.
Ford confirmed Monday that it will convert the Glendale factory into a battery energy storage operation serving customers such as utilities, wind and solar developers, and large data centers used to train artificial intelligence. According to the Wall Street Journal, Ford plans to begin shipping the new battery systems from its Kentucky and Michigan plants in late 2027 as part of what the company describes as a move toward “higher-return opportunities.”
The pivot comes at a steep cost. Ford said it expects to take a $19.5 billion hit to profits as it scales back its EV ambitions. “Instead of plowing billions into the future knowing these large EVs will never make money, we are pivoting,” Ford CEO Jim Farley said in an interview with the Wall Street Journal.
In a video message sent to employees, Michael Adams, CEO of BlueOval SK — the joint venture originally formed between Ford and South Korea’s SK On — said the shift means “the end of all BlueOval SK Positions in Kentucky.” Adams did not provide an exact timeline for the layoffs but said workers would continue receiving pay and benefits for the next 60 days.
According to NPR, Ford said it plans to hire 2,100 workers for the reconfigured plant and noted that all laid-off employees will have the “opportunity to apply” for those roles. Farley described the move as strategic. “This is a customer-driven shift to create a stronger, more resilient, and more profitable Ford,” he said in a statement. “The operating reality has changed, and we are redeploying capital into higher-return growth opportunities.”
The Hardin County project was originally billed as a $5.8 billion investment and a cornerstone of Ford’s EV future. But demand for electric vehicles has fallen short of expectations. Farley has acknowledged the company overbuilt EV capacity, citing weaker consumer demand and regulatory rollbacks under President Donald Trump’s administration.
Only one battery had rolled off the Glendale assembly line, intended for the electric F-150 Lightning, before Ford canceled production of that truck this week. Work on a second nearby plant has been paused, and Ford and SK On recently ended their partnership altogether.
Kentucky Gov. Andy Beshear said the state is renegotiating incentive agreements and focusing on displaced workers. “Right now, our primary focus is helping the affected BlueOval employees find new jobs,” he said, adding that job fairs and support resources are being organized.
The Wall Street Journal reported Ford’s revised plan would use just 23% of the site’s original capacity when production begins in 2027, underscoring how sharply the company’s EV ambitions have been scaled back.
READ NEXT