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Ford EV Battery Partner SK Expects Growth Will Slow Down

With demand for all-electric vehicles lagging a bit behind expectations as of late, Ford responded by pushing back $12 billion in planned EV investments, while also cutting its 2024 Ford F-150 Lightning production target in half. However, The Blue Oval isn’t alone in that regard, as several other automakers have followed suit, as well as its own joint-venture partner, SK On. Regardless, SK recently stated that even though it’s struggling to significantly ramp up production of lithium-iron phosphate (LFP) battery packs while also turning a profit, the South Korean company still has a positive long-term outlook and expects to emerge from the red this year. Now, however, SK is once again warning that its growth over the short term will continue to slow down, according to Reuters.

“The overall battery shipment in the first half of this year would likely drop slightly, however, with automaker customers’ launch of new EVs and lower interest rates supporting an increase battery shipments in the second half of the year,” SK On Chief Financial Officer Kim Kyunghoon said in the company’s post-earnings conference call.

These comments came as SK Innovation – SK On’s parent company – posted an operating profit of 73 billion won ($54.75 million USD) in Q4 2023, compared to a 765 billion won loss the year prior. However, that figure also trailed behind the forecasted 558 billion won gain SK was expected to produce, which the company blamed on weaker refining margins and lower prices in its petrochemical business.

SK On NCM9 Battery

Meanwhile, SK On recorded a loss of 18.6 billion won in the fourth quarter of the year, which was significantly lower than Q3, when it lost a total of 86.1 billion won. Regardless, the company’s dedicated EV division previously expected to turn a profit in Q4, though now, it plans to merely break even in the second half of 2024.

We’ll have more Ford supplier news to share 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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