Ford Authority

Ford EV Partner SK Says Long Term Outlook Remains Positive

Though it has adjusted its plans to build lithium-iron phosphate (LFP) batteries amid a general slowdown in EV demand and heated competition, Ford EV battery partner SK On is still forging ahead in that regard and is also working to develop solid-state batteries as it aims to be come profitable this year. This slowdown also impacted the joint venture between SK and Ford – BlueOvalSK – as it will still build two battery plants in Kentucky, but only one will be used when production begins in 2025. Regardless of the many challenges it’s facing in the short term, however, SK On still says that its long term outlook remains positive, according to Bloomberg.

“We just need to be flexible relative to the market situation for the time being,” said SK On Chief Commercial Officer Min Sung. “Our goal through the end of the decade, it remains strong and it remains in line with our plan. Our goal through the end of the decade remains unchanged and it’s the same for Ford. Small volume, we can still meet it under the current guidelines, but when it comes to bigger ramp-ups in 2025-2026, 2027, we need a little more time and that’s what we’re asking different government agencies.”

As Ford Authority previously reported, SK isn’t alone in this regard, as Ford recently decided to delay around $12 billion in planned EV investments as the result of a slowdown in demand, even as EV sales continue to rise and set new records. Part of this cutback includes only using one of two battery plants at the future BlueOvalSK site, as previously mentioned, as well as scaling back the planned output of the also-under-construction BlueOval Battery Park Michigan plant.

LFP EV Battery SK On 2023 InterBattery Show

The biggest challenge for SK On at the moment centers around how to expand production in a profitable manner, all while reducing its reliance on China for the raw materials used in the construction of EV batteries. At the moment, China dominates that particular part of the market, which makes it difficult to do precisely that.

We’ll have more on SK On soon, so be sure and subscribe to Ford Authority for continuous Ford news coverage.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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