Ford is scaling back EV plans due to slow adoption, sharing battery plant with Nissan

From Barchart: 2025-05-21 06:46:00

Ford Motor is adjusting its electric-vehicle plans, sharing its Kentucky battery plant with Nissan due to slow EV adoption. The joint venture with SK On now has one idle plant and another below capacity, impacting Ford’s 2024 outlook with a projected $5 billion EV loss this year.

Sharing production lines helps Ford absorb costs and mitigate tariffs, while Nissan gains a domestic battery source. Ford’s BBB corporate rating and $30 billion in cash provide a financial cushion amid EV challenges, as the auto sector’s EV/EBITDA ratio falls below the industry median.

As Ford partners with Nissan to optimize its battery business, the auto industry faces the challenge of balancing sustainability goals with financial realities. The move reflects the cautious investor sentiment towards capital-intensive EV ventures lacking immediate profitability.



Read more at Barchart:: Ford Scales Back EV Ambitions as Demand Falters