Reference News, November 23 report: According to the website of "Nikkei", on November 19, global electric vehicle (EV) batteries are facing overproduction, and it is expected that the total capacity of EV batteries will expand to three times the actual demand by 2030. The problem of supply surplus in the North American market is particularly severe, with capacity expected to expand fourfold in the next five years. General Motors and Ford have already begun adjusting their production plans.

In Elizabeth Town, Kentucky, USA, Ford and SK On, a South Korean battery giant, are jointly building a large battery factory. The two companies have invested 5.8 billion U.S. dollars, constructing the factory on a vast land area equivalent to 130 Tokyo Dome stadiums, for the production of batteries needed for Ford's EVs.

Some areas of the factory have already started operations, but the full production time has not been announced yet. As of August, the joint venture had hired about 1,500 people, and plans to increase the number of employees to 5,500 by 2030.

The outlook for the factory is overshadowed by Ford's reduction in EV investment. Due to weak sales performance, its EV business has been in continuous loss for more than three years, and the company is accelerating structural reforms. Its Chief Financial Officer, Shelly Hous, said in October this year: "We have cut our battery capacity by 35% compared to what we planned two years ago."

There are reports that Ford's signature electric pickup truck, the F-150 Lightning, may be停产 in November, and the battery used in this electric vehicle is produced by its battery factory in Kentucky. If the plan cannot proceed smoothly, it will have a significant impact on the local economy and employment.

It is not only Ford that has shaken up its battery investment plan. General Motors announced on October 29 that it will lay off a total of 1,550 employees at its joint battery factories with LG Energy Solution in Ohio and Tennessee.

General Motors' CEO Mary Barra said: "Given the short-term slowdown in EV demand and changes in the regulatory environment, we are re-adjusting our capacity."

Japanese companies are also re-evaluating their investment plans. Panasonic's newly built EV battery factory in Kansas, USA, started operation in July, but the full production time has not been determined yet. Panasonic originally planned to achieve full production of the factory by the end of fiscal year 2026, but the decline in Tesla's product sales has affected this.

The main reason for the companies' adjustment of their plans is that the popularization of EVs in the United States has not reached initial expectations, and the Trump administration has made adjustments to the EV policies of the previous Biden administration.

The previous Biden administration aimed to compete with China by cultivating the domestic EV industry and introduced tax credit policies for EV purchases and related investments. This led to enterprises both domestically and internationally beginning to invest in the United States.

However, the Trump administration has abolished the tax credits for EV purchases by the end of September this year and plans to revoke related environmental regulations. According to the National Renewable Energy Laboratory of the United States, as of September, there were more than 1,000 battery-related investment projects being carried out across the country, but some projects have been forced to be suspended.

In the field of EV batteries, Chinese companies account for 70% of the global share. Governments of countries such as the United States and Japan have encouraged domestic advancement of EV battery production from the perspective of economic security, aiming to reduce dependence on China. However, due to the slowdown in EV demand exceeding expectations, the industrial cultivation policies of various countries seem to have had the opposite effect.

Stagnant demand may exacerbate the global battery surplus. The American consulting firm A.T. Kearney pointed out that the North American region, including the United States, will be the most affected. Many manufacturers have been continuously investing under government support, and now face the dilemma of overcapacity and increased financial burden.

European countries have stopped issuing EV subsidies, and the impact is gradually spreading. The Swedish battery manufacturer Northvolt, which is funded by German automaker Volkswagen, has submitted a bankruptcy application in March. With the acceleration of the slowdown in US EV demand, a new round of corporate restructuring and market reshuffling is expected. (Translation by Ma Xiaoyun)

Original article: https://www.toutiao.com/article/7575817351010976262/

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