Ford battery partner SK On sees strong EV growth beyond 2024

SK On Co., Ford Motor Co.’s South Korean electric-car battery partner, anticipates a sluggish year for electric vehicle (EV) sales in 2024, reflecting a broader industry trend. However, despite short-term challenges, SK On remains optimistic about the long-term prospects of EVs. The company’s Chief Commercial Officer, Min Sung, emphasized the need for flexibility in response to market dynamics, while reaffirming SK On’s strong commitment to its goals through the end of the decade. SK On and Ford’s collaboration extends to building battery plants in Tennessee and Kentucky, with production slated to commence in 2025. Although Ford postponed the start of a second Kentucky facility, both companies maintain steadfast goals for expansion in the EV sector, despite acknowledging current market constraints.

While several major automakers, including General Motors Co., Honda Motor Co., and Tesla Inc., revised down their EV sales targets amid weakening demand, SK On anticipates profitability this year, buoyed by tax incentives from the Biden administration’s green energy initiatives. Additionally, the company aims to mitigate reliance on Chinese suppliers for crucial battery materials, aligning with efforts to diversify the supply chain. As SK On navigates these challenges, it seeks regulatory flexibility to meet future production demands, underscoring the complexities of transitioning towards sustainable mobility solutions amidst evolving market dynamics and geopolitical considerations.

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#electricvehicles #batteryproduction #greenenergy #evsales #supplychain #automotiveindustry #marketdynamics #sustainablemobility #geopoliticalconsiderations #regulatoryflexibility

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