Ford EV Partner EcoPro Delays Plant Investment Amid Pivot

[ice-capades]

Ford EV Partner EcoPro Delays Plant Investment Amid Pivot

https://fordauthority.com/2024/04/ford-ev-partner-ecopro-delays-plant-investment-amid-pivot/

 

 

With Ford shifting its focus away from larger, pricier EVs and toward smaller, cheaper ones, the automaker also recently announced that it’s pushing back the planned launch dates for the North American Ford Explorer EV and second-generation Ford F-150 EV – which drew the ire of the Canadian union Unifor. Of course, Ford isn’t alone in this regard, as several other automakers and even battery makers have dialed back similar plans in the face of weakened demand for all-electric vehicles as well. Now, that list has grown to include cathode material company and Ford EV partner EcoPro, according to The Korea Times.

 

 

Back in March 2023, another Ford EV partner – South Korean battery manufacturer SK On – announced that it planned to team up with EcoPro and Chinese battery materials producer GEM to erect a battery precursor plant in Saemangeum, South Korea, which was expected to churn out around 50,000 tons of precursors annually – a compound mixed with raw materials such as nickel, cobalt, and manganese that account for more than 65-70 percent of the cost of cathode materials – when it came online this year, which is enough to supply the production of roughly 300,000 105 kWh batteries for electric vehicles per year.

 

Now that Ford has scaled back its EV ambitions, EcoPro has also announced that it’s postponing a planned $87 million investment in EcoCAM Canada, a joint-venture that was aiming to open a cathode plant in that country as well. This means that production at this future facility now isn’t expected to begin until 2027, a year later than originally planned.

 

 

According to this report, EcoPro CEO Song Ho-jun stated this decision on a call with shareholders roughly one week before Ford revealed that it was pushing back production of the Explorer EV, which is slated to occur at the Oakville Assembly plant in Canada. “The establishment of the joint venture between SK On, Ford, and EcoPro is expected to be delayed a bit,” Ho-jun said.

Edited April 8 by ice-capades
Additional Content

[Oac98]

10 hours ago, ice-capades said:

Ford EV Partner EcoPro Delays Plant Investment Amid Pivot

https://fordauthority.com/2024/04/ford-ev-partner-ecopro-delays-plant-investment-amid-pivot/

 

 

With Ford shifting its focus away from larger, pricier EVs and toward smaller, cheaper ones, the automaker also recently announced that it’s pushing back the planned launch dates for the North American Ford Explorer EV and second-generation Ford F-150 EV – which drew the ire of the Canadian union Unifor. Of course, Ford isn’t alone in this regard, as several other automakers and even battery makers have dialed back similar plans in the face of weakened demand for all-electric vehicles as well. Now, that list has grown to include cathode material company and Ford EV partner EcoPro, according to The Korea Times.

 

 

Back in March 2023, another Ford EV partner – South Korean battery manufacturer SK On – announced that it planned to team up with EcoPro and Chinese battery materials producer GEM to erect a battery precursor plant in Saemangeum, South Korea, which was expected to churn out around 50,000 tons of precursors annually – a compound mixed with raw materials such as nickel, cobalt, and manganese that account for more than 65-70 percent of the cost of cathode materials – when it came online this year, which is enough to supply the production of roughly 300,000 105 kWh batteries for electric vehicles per year.

 

Now that Ford has scaled back its EV ambitions, EcoPro has also announced that it’s postponing a planned $87 million investment in EcoCAM Canada, a joint-venture that was aiming to open a cathode plant in that country as well. This means that production at this future facility now isn’t expected to begin until 2027, a year later than originally planned.

 

 

According to this report, EcoPro CEO Song Ho-jun stated this decision on a call with shareholders roughly one week before Ford revealed that it was pushing back production of the Explorer EV, which is slated to occur at the Oakville Assembly plant in Canada. “The establishment of the joint venture between SK On, Ford, and EcoPro is expected to be delayed a bit,” Ho-jun said.

Still trying to process this 2027 crap. 

[jpd80]

5 hours ago, Oac98 said:

Still trying to process this 2027 crap. 

It sucks man, Ford now has a huge hole in its product plans for the next few years.

I can’t believe that Ford basically let Oakville go over a cliff without a contingency plan,

almost compelling that their BEVs were probably so bad as to be hopelessly uncompetitive 

and now they’re going to redesign these things for a third time?  ..F*** my brown dog.

Edited April 9 by jpd80

[Oac98]

4 hours ago, jpd80 said:

It sucks man, Ford now has a huge hole in its product plans for the next few years.

I can’t believe that Ford basically let Oakville go over a cliff without a contingency plan,

almost compelling that their BEVs were probably so bad as to be hopelessly uncompetitive 

and now they’re going to redesign these things for a third time?  ..F*** my brown dog.

They know that whatever they’re designing isn’t gonna sell well so back to the drawing board yet again. If they somehow change the plan yet again and pull out of Canada the federal and provincial government should demand their money back and slap some tariffs on ford. Can anyone tell me in here when a plant has been idled and restarted after a three year pause that wasn’t closed down first?! I got over 25 years I’ll be ok what about the ppl with less seniority? This is all just crap! 

[silvrsvt]

5 hours ago, jpd80 said:

almost compelling that their BEVs were probably so bad as to be hopelessly uncompetitive 

and now they’re going to redesign these things for a third time?  ..F*** my brown dog.

 

That is a bit of a leap there

 

The market in general has many different issue, with the biggest being pricing and interest rates along with the general feeling of uncertainty with the economy. With inflation cutting into peoples buying power, people are finally making more prudent purchasing decisions. 

Plunging Pickup Truck Sales Threaten Detroit’s Profit Engine

 

Then add in the uncertainty with consumers and EVs, the early adaptors won't have an issue, but people who are on the fence are going to be harder to convince, are you going to buy something that might have a 300-400 mile range in 20 minutes 2-3 years after you buy one? The EV market needs to mature more before people become comfortable in buying them. Hopefully the charging infrastructure still grows even as EV demand softens over the next few years to help mitigate that issue. 

[jpd80]

2 hours ago, silvrsvt said:

 

That is a bit of a leap there

 

The market in general has many different issue, with the biggest being pricing and interest rates along with the general feeling of uncertainty with the economy. With inflation cutting into peoples buying power, people are finally making more prudent purchasing decisions. 

Plunging Pickup Truck Sales Threaten Detroit’s Profit Engine

 

Then add in the uncertainty with consumers and EVs, the early adaptors won't have an issue, but people who are on the fence are going to be harder to convince, are you going to buy something that might have a 300-400 mile range in 20 minutes 2-3 years after you buy one? The EV market needs to mature more before people become comfortable in buying them. Hopefully the charging infrastructure still grows even as EV demand softens over the next few years to help mitigate that issue. 

I get that but also understand that this delay now means that this vehicle has been delayed a total of four years.

Anyone looking on would naturally wonder if a different vehicle could have been developed instead (opportunity cost)

and you know, given a decent ROI that could have been used to fund a future 3-row BEV…