Breakingviews - China car wars have surprising winners https://t.co/CK86tLC9ey https://t.co/CK86tLC9ey
From Breakingviews - China car wars have surprising winners https://t.co/D76mPaeetN https://t.co/D76mPaeetN
🇨🇳🌎 #China drives global EV battery supply to over 3 times demand – Nikkei https://t.co/tTN1bhUtLl
Ford Motor Co. and South Korea’s SK On have begun producing lithium-nickel-manganese-cobalt batteries at their new BlueOvalSK factory in Glendale, Kentucky, but the partners are already seeking buyers beyond Ford’s own models after running into surplus supply. The plant, the first of three planned under a venture backed by a $9.2 billion U.S. Energy Department loan, was meant to feed Ford’s electric-vehicle lineup, starting with the F-150 Lightning pickup and E-Transit van. Weaker demand is forcing a rethink. U.S. sales of the F-150 Lightning fell 26% in the second quarter, and the upcoming expiry of a $7,500 federal consumer tax credit on 30 September threatens to slow purchases further. BlueOvalSK chief executive Michael Adams said talks are under way with rival automakers and energy-storage companies; Nissan was previously reported to be close to a supply deal. The Glendale facility will employ about 1,450 workers—well below the 2,500 originally forecast—and the start-up of a second Kentucky battery plant has been paused while a Tennessee site is being pushed back to 2027. The pullback illustrates a broader glut in the battery market. Global production capacity is on track to reach 3,930 gigawatt-hours this year, more than three times projected demand of 1,161 GWh, according to Nikkei Asia. While Chinese producers such as CATL and BYD continue to expand, U.S. and Japanese efforts to localize battery manufacturing are running head-long into cooling EV sales, prompting companies like Ford and SK On to seek interim outlets for their excess output.
