Ford to lay off 1,600 employees while reworking battery production

Ford Motor Company is laying off 1,600 employees at its battery manufacturing operation in Hardin County, Kentucky, as it enters a retooling phase at the site amid a broader reset of its electric vehicle strategy.

Hardin County Judge Executive Keith Taul said the layoffs affect the BlueOval SK facility in Glendale, a major joint venture project originally positioned as a cornerstone of Ford’s US electric vehicle push. In a statement posted by Hardin County Government on Tuesday, Taul said local authorities were working to support displaced workers and remain in active communication with Ford and state officials.

“I am focused on doing whatever possible to help our impacted citizens have the support and resources they need to find new jobs,” Taul said, adding that further details were expected as discussions continue.

Despite the immediate job losses, Taul struck an optimistic note on Ford’s longer-term plans for the site. He said the company has decided to take over the Glendale facility directly and begin a retooling phase aimed at emerging energy storage markets. According to Taul, Ford plans to invest nearly $2 billion over the next two years and has indicated the creation of at least 2,100 new jobs once the transition is complete.

The timing of the hiring recovery remains uncertain. The county government said some sources estimate the transitional phase could last around 18 months, though no firm timeline has been confirmed by Ford.

The Glendale facility is expected to support production of lithium iron phosphate battery technology, which is widely used in large-scale energy storage systems for data centres, utility infrastructure, and commercial and industrial applications, the county government said. The shift suggests a strategic pivot away from an exclusive focus on electric vehicles towards broader energy storage opportunities.

Ford has also announced plans to restructure several manufacturing sites and adjust product offerings across other states, according to Hardin County Government, underscoring the scale of change under way within the company’s global operations.

The layoffs come as Ford reassesses its electric vehicle investments amid slowing demand and changing policy conditions. CNN reported that the company announced on Monday it would pause production of the F-150 Lightning, its flagship electric pickup truck. The move is expected to result in a financial hit of nearly $20 billion, CNN said, though Ford has stated that the loss will be offset by strong quarterly sales of its traditional petrol-powered trucks and SUVs.

CNN also reported that Ford and other automakers had accelerated EV investments under environmental regulations and incentives introduced during the Biden administration, many of which have since been rolled back under the Trump administration, weakening the policy support for electric vehicle adoption.

For Hardin County, the near-term challenge remains managing the employment shock while betting on Ford’s promised reinvestment. “My commitment is to support long-term job opportunities, economic stability and responsible growth that serves Hardin County residents now and in the future,” Taul said.