Global automakers are scaling back electric vehicle (EV) battery investments after EV production fell short of expectations, causing financial losses and forcing companies to restructure partnerships. Analysts estimate the industry has already lost $60 billion, with further losses likely in coming years.
Several carmakers have dissolved joint ventures or reduced planned battery investments. In the United States, Ford and SK On ended their Blue Oval SK partnership, originally set up in 2021 to build three battery plants worth $11.4 billion. Ford will now take over the Kentucky plants, while SK On retains the Tennessee facility and shifts production to lithium iron phosphate (LFP) batteries.
Ford’s Model e division posted losses of $4.7 billion in 2023, $5.1 billion in 2024, and $4.8 billion in 2025, highlighting the impact of slower EV adoption. In Europe, Ford ended its battery supply agreement with LG Energy Solutions in Poland, switching production to Michigan.
Stellantis is also revising its battery plans, canceling two factories in Germany and Italy under its ACC joint venture and focusing production at its French plant and a new LFP facility in Spain with CATL. In North America, Stellantis plans to exit its partnership with Samsung SDI after writing off $26 billion in EV-related investments.
Automakers are exploring alternative battery markets, supplying energy storage systems for AI data centers and robotics to offset losses from slower EV growth.
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