Cast your mind back to 2021. Electric vehicles were hot stuff, buoyed by Tesla’s increasingly stratospheric valuation and a general optimism fueled by what would turn out to be the most significant climate-focused spending package in US history. For some time, automakers had been promising an all-electric future, and they started laying the groundwork to make that happen, partnering with battery suppliers and the like.
Take Ford—that year, it announced a joint venture with SK to build a pair of battery factories, one in Kentucky, the other in Tennessee. BlueOvalSK represented an $11.4 billion investment that would create 11,000 jobs, we were told, and an annual output of 60 GWh from both plants.
Four years later, things look very different. EV subsidies are dead, as is any inclination by the current government to hold automakers accountable for selling too many gas guzzlers. EV-heavy product plans have been thrown out, and designs for new combustion-powered cars are being dusted off and spiffed up. Fewer EVs means a lower need for batteries, and today we saw that in evidence when it emerged that Ford and SK On are ending their battery factory joint venture.
This post highlights an interesting shift in the EV industry. It’s fascinating to see how the market dynamics are changing and how companies are adapting to new trends. Looking forward to seeing how this impacts the future of electric vehicles.
Absolutely, it really is a pivotal moment for the industry. The decline in demand for EVs could potentially reshape supply chains and battery production strategies moving forward. It’ll be interesting to see how manufacturers adapt to this new landscape.