EV Plans Stalled: Ford, US Policy Shifts Shake Global Market

The global electric vehicle (EV) landscape is experiencing a significant reality check as major automakers adjust strategies. Ford's recent announcement to cancel a substantial EV battery order for Europe and halt production of its F-150 Lightning truck has sent shockwaves through the industry. This move, alongside proposed rollbacks on combustion-engine car bans from 2035 in Europe, is increasing concerns about long-term EV demand.

These developments are forcing major battery and car manufacturers in South Korea and Japan to rework their plans. LG Energy Solution and SK On have faced pressure and portfolio adjustments following Ford's strategic shifts. Japanese automakers, including Honda and Toyota, are now slowing their EV transitions, cutting planned investments and postponing EV battery plant projects, reinforcing a focus on hybrid and internal combustion engine vehicles.

Simultaneously, policy changes in the United States are contributing to the slowdown. President Trump's actions, including scrapping a $7,500 consumer tax credit for EVs and proposing cuts to fuel-efficiency standards, further dampen EV momentum. As global automakers reassess their commitments, Chinese manufacturers are seen as potential beneficiaries, poised to gain significant market share.