The news (also involving LG Energy Solution and Koç Holding) is a blow to innovation and investment momentum happening among some of the largest automakers around the world.
The news kills construction for what would have been one of Europe’s largest battery cell manufacturing plants, set to start production in 2026, according to Electrek.
Ford and its partners may be partly influenced by what CNBC reports as a glut in EV inventory at dealerships. It comes while automakers have ponied up $616 billion for EV projects through 2027, per CNBC research.
Longer-range forecasts, however, reveal reason for optimism. Research firm Markets and Markets expects the global EV sector to grow to $951.9 billion by 2030 — increasing at a compound annual growth rate of 13.7% during that time. The agency cites technological advancements, concern for the environment, and favorable government policies as part of the reason.
Why is it important?
Widespread EV use is a key part of reducing planet-warming air pollution. With no tailpipe emissions, EVs produce less dirty air during the vehicle’s lifetime than gas-powered vehicles, even when considering pollution generated from battery manufacturing, according to the U.S. Environmental Protection Agency.
The typical gas-powered passenger vehicle makes more than five tons of foul air each year with heat-trapping gas, per the EPA.
What should I do?
Newer models are entering the scene and providing more competition, which is a good thing for buyers.
Keep an eye out for the latest government tax breaks and other programs made to incentivize EV adoption. Depending on what’s being offered, leasing may be a better option.
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