LG Energy, GM Adjust US Plant Plans Due To Waning EV Market
Portfolio Pulse from Shivani Kumaresan
LG Energy Solution and General Motors (GM) are slowing down the construction of their third plant in Michigan due to weak EV demand and potential political shifts in the U.S. The project, initiated in 2022 with a $2.6 billion investment, is being adjusted for flexible operation. GM is also revising its EV production goals, and other Korean battery makers like Samsung SDI and SK On are facing similar challenges, potentially scaling back U.S. investments if political changes occur.
July 22, 2024 | 1:05 pm
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SK On, a supplier for Ford, has declared an emergency after significant Q1 losses and is evaluating options to enhance competitiveness. The start of a second Kentucky facility has been postponed due to slowing EV sales.
SK On's financial struggles and the postponement of a new facility could negatively impact Ford's EV production plans, likely leading to a short-term negative impact on its stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
NEGATIVE IMPACT
General Motors is slowing down the construction of its third plant with LG Energy in Michigan due to weak EV demand and potential political shifts. GM is also revising its EV production goals.
The slowdown in plant construction and revision of EV production goals indicate potential challenges for GM's growth in the EV market, likely leading to a negative short-term impact on its stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Samsung SDI, a supplier for Stellantis, is facing a slowdown in the EV market, which it describes as a 'new crisis.' This could impact Stellantis' EV production plans.
The slowdown faced by Samsung SDI, a key supplier for Stellantis, could hinder Stellantis' EV production plans, potentially leading to a negative short-term impact on its stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50