Asian car, battery makers revamp EV strategy amid US market changes

Asian car and battery makers are changing their EV strategies after US market shifts, Ford's moves and policy changes shake up global electric vehicle plans

Electric vehicle (EV) strategies across Asia are facing a fresh reality check. Major battery and car makers in South Korea and Japan are reworking their plans after sharp policy shifts in the US and Europe, combined with sudden changes in strategy by Ford Motor that have sent shockwaves through the industry, Nikkei Asia reported.

 

The developments highlight growing uncertainty around EV demand, subsidies and infrastructure -- just as companies have spent billions to prepare for an electric future.

 

Ford’s decision hits Korean battery giants

 

South Korean battery makers, especially those with large US investments, have come under pressure after Ford announced major changes to its EV plans this week.

 

 

LG Energy Solution, South Korea’s biggest battery maker, saw its shares fall sharply after Ford cancelled a 9.6 trillion won ($6.5 billion) EV battery order meant for Europe. The stock dropped 8.9 per cent on Thursday and fell more than 3 per cent again on Friday morning in Seoul, the news report said.

 

Ford said on Tuesday that it would no longer go ahead with a new electric commercial van for Europe. It announced a $19.5 billion EV-related charge and halted production of its all-electric F-150 Lightning truck to focus more on hybrid vehicles.

 

The same day, the European Commission proposed rolling back an effective ban on new combustion-engine cars from 2035, following pressure from Europe’s auto industry, adding to concerns about long-term EV demand.

 

Ford also said that it would launch its own energy storage systems (ESS) battery business to meet energy infrastructure needs and growing data centre demand.   

 

SK On setback deepens concerns

 

Ford’s shift also led to the termination of a $6.2 billion joint venture with SK On in the US, dealing another blow to the Seoul-based battery maker, which has struggled to turn profitable.

 

SK On said that a Ford subsidiary would take full ownership of battery plants in Kentucky, while SK On would fully own and operate its Tennessee plant. The company said ending the partnership would improve its finances and flexibility.

 

The news report quoted a spokesperson as saying that the company can now supply batteries to other customers, marking a step forward in its strategy.

 

US policy shifts slow EV momentum

 

The changing climate in the US has added to industry worries. President Donald Trump scrapped a $7,500 consumer tax credit for EVs in September and proposed deep cuts to fuel-efficiency standards earlier this month.

 

These moves have reinforced Japanese automakers’ belief that they should slow their EV transition and continue focusing on hybrid and internal combustion engine vehicles.

 

Honda Motor has cut planned investments through financial year 2031 to 7 trillion yen ($45 billion) from 10 trillion yen and delayed C$15 billion ($10.9 billion) in EV supply chain investments in Canada.

 

Toyota postponed plans for an EV battery plant in Fukuoka for the second time, while Nissan abandoned its own battery plant project in the region earlier this year. Panasonic, a major Tesla supplier, has also delayed full-scale EV battery production at its new Kansas factory.

 

Meanwhile, Mitsubishi Motors is doubling down on fuel vehicles.   

 

China seen as biggest winner

 

As global automakers slow their EV ambitions, experts say Chinese manufacturers are likely to gain. China aims for over 85 per cent of new cars to be EVs or plug-in hybrids by 2040, the news report said.

 

The news report quoted Lee Hang-koo of the Korea Automotive Technology Institute as saying that if China continues on its current path, the competitive landscape could shift strongly in China’s favour, given its growth outside the US and Europe.