The production plan for a large electric SUV, which was originally postponed for 2 years until 2025, has been canceled. LG Energy Solution batteries for the Mustang electric car will be shifted from production in Poland to production in the United States. The production schedule for the SK On joint venture will also be accelerated.
‘[Seoul Economy]’
“Ford, an American automotive company, has decided to increase battery production in the United States in cooperation with Korean battery manufacturers such as LG Energy Solution and SK On. The production plan for the large electric Sports Utility Vehicle (SUV) that was postponed in April has been canceled. Analysis suggests that Ford has shifted its focus to adapt to fluctuations in electric car demand.”
“On the 21st (local time), Ford announced that they are canceling the production plan for the 3-row large electric SUV. Just a few months after delaying the release of the vehicle to 2027 from 2025, Ford has now given up on the production plan altogether. Ford also plans to reduce the annual capital expenditure ratio related to pure electric vehicle production from 40% to 30%. The industry analyzes that Ford’s decision this time is once again adjusting the speed of electric vehicle production in response to global slowdown in electric vehicle demand.”
“Ford is planning to further increase battery production in the United States. They announced that, in cooperation with LG Energy Solution, they are considering moving the production of some batteries used in the Mustang Mach-E model from the Poland factory to the Holland factory in Michigan starting next year. Ford explained that this is to qualify for the tax deduction provision under the Biden administration’s Inflation Reduction Act (IRA) that provides up to $7,500 for electric vehicle purchases.”
“The start of battery production in the United States will also be accelerated. Ford announced that their joint venture with SK On, BlueOvalSK’s first factory in Kentucky will start producing batteries for the current ‘E-Transit’ electric truck and ‘F-150 Lightning’ electric pickup truck from the mid-2025. This is expected to bring about significant cost improvements compared to the original plan.”
“BlueOvalSK’s Tennessee plant will start production of batteries for Ford’s new electric commercial van by the end of 2025. These battery cells, produced at the ‘BlueOval City’ electric vehicle production site being built in Tennessee, will be used not only for next-generation electric trucks but also for future advanced electric vehicles.”
“In 2021, SK On and Ford jointly invested a total of 10.2 trillion won, with 5.1 trillion won each, to establish an electric vehicle battery joint venture and build two battery factories in Kentucky and one in Tennessee. Construction of these factories has been ongoing since 2022.”
“Ford stated that through this shared battery cell strategy, they will secure flexibility for manufacturing multiple vehicle segments and electric vehicle platforms amidst evolving market conditions.”
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