As Ford reevaluates speed of EV investment, what does that mean for Tennessee project?

The massive BlueOval City project in Tennessee won't be impacted by Ford's decision to reevaluate the speed of its investment in electric vehicles due to lower than expected market demand, the company said Friday.

“Our priority is to build a profitable and enduring EV business. That means we will balance growth, scale and profitability," Ford said in a statement. "As part of this, we are slowing down several investments. This includes taking the decision with SK On to delay the second BlueOval SK (BOSK) Battery Park plant in Kentucky. The first BOSK battery plant in Kentucky and the second in Tennessee remain on-track.”

On Thursday, John Lawler, Ford chief financial officer, said the automaker is "not moving away" from its next generation of electric products but is "going to be very thoughtful" about balancing consumer demand and volumes produced. He estimated the delay of an estimated $12 billion in capital investments related to electric vehicle production.

The planned $5.6 billion BlueOval City campus in Stanton includes Ford's Tennessee Electric Vehicle Center, which will help build out its next-generation electric truck, and the BlueOval SK battery plant, will help produce EV batteries for future Ford and Lincoln vehicles. The battery plant is a joint venture between Ford and SK On.

Construction is underway on both plants — located about 40 miles northeast of Memphis, with production expected to start at both in 2025. The two plants are expected to create about 6,000 jobs combined.

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Meanwhile, in Kentucky, the first electric vehicle battery plant remains on track to open in 2025, Ford spokesperson T.R. Reid told The Courier Journal in Louisville. While the second plant was originally slated to begin production the following year, in 2026, that date is now uncertain, Reid said.

"EV sales are growing everywhere, including ours. But the pace of adoption is slower than what folks in the industry, including Ford, originally expected," Reid said.

Lawler said while the adoption of electric vehicles is slower than expected, it is growing. Buyers seem to be shifting more quickly to hybrid vehicles, which do offer 25% efficiency on emissions, he said.

Ford said electric vehicle customers in North America are unwilling to pay premium prices, limiting price and profitability.

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This article originally appeared on Memphis Commercial Appeal: Ford in Tennessee: What EV investment change means for BlueOval City