Asian Car and Battery Makers Revamp EV Strategy for US Market
Electric vehicle strategies across Asia are facing a fresh reality check as major battery and automakers in South Korea and Japan reassess their plans amid policy shifts in the US and Europe and abrupt strategic changes by Ford Motor, according to a source. These developments highlight growing uncertainty over EV demand, subsidies, and charging infrastructure, coming after years of heavy investment predicated on rapid electrification. South Korean battery makers, particularly those with large US exposure, are under renewed scrutiny following Ford’s announcement this week of major changes to its EV roadmap.
LG Energy Solution, South Korea’s largest battery producer, saw its shares tumble after Ford canceled a 9.6 trillion won ($6.5 billion) EV battery order for Europe. The stock dropped 8.9 percent on Thursday and slid a further 3 percent on Friday morning in Seoul. On Tuesday, Ford said it would abandon plans for a new electric commercial van in Europe, take a $19.5 billion charge tied to EVs, and halt production of its all-electric F-150 Lightning to refocus on hybrids. That same day, the European Commission proposed reversing a planned 2035 ban on new combustion-engine cars, bowing to pressure from Europe’s auto industry over long-term EV demand concerns.
Ford also unveiled plans to launch its own energy storage systems battery business to support energy infrastructure and data-center demand. Its pivot led to the cancellation of a $6.2 billion joint venture with SK On in the US, delivering another blow to the Seoul-based battery maker, which has struggled to reach profitability. SK On said a Ford unit would take full ownership of battery plants in Kentucky, while SK On would retain full control of its Tennessee facility, adding that ending the partnership would improve its finances and flexibility. A spokesperson noted the company could now supply batteries to other customers, marking progress in its broader strategy.
Shifting policy in the US has amplified industry anxiety. In September, President Donald Trump scrapped a $7,500 EV consumer tax credit and earlier this month signaled sharp cuts to fuel-efficiency standards. These moves have reinforced Japanese automakers’ belief that they should slow EV transitions and double down on hybrids and combustion engines. Honda cut planned investment for fiscal 2031 to 7 trillion yen from 10 trillion yen and delayed C$15 billion in EV supply-chain projects in Canada. Toyota postponed its EV battery plant in Fukuoka again, Nissan scrapped its own battery project there, and Panasonic delayed full-scale EV battery output at its Kansas plant. As global automakers pull back, analysts say China stands to gain, with targets for more than 85 percent of new cars to be EVs or plug-in hybrids by 2040, potentially tilting the competitive balance decisively in its favor.
