Plans to build one of Europe’s largest electric vehicle battery cell plants have fallen through. Ford’s partnership with LG Energy Solutions (LGES) and Koç Holding is scrapping plans to produce EV battery cells in the region, citing the “current pace of EV adoption.”
Ford, LGES drop plans for EV battery plant in Turkey
Ford, LGES, and Koç Holding signed a memorandum of understanding (MoU) in February to establish “one of Europe’s largest commercial EV battery cell” plants in Turkey.
Annual production was intended to reach at least 25 GWh, with the potential to be expanded up to 45 GWh to build battery cells. The JV said they were on track to break ground later this year, with production starting in 2026.
Lisa Drake, VP of Ford EV industrialization, said the battery plant would “lay a solid foundation to building a thriving electric vehicle future for Ford in Europe.”
Meanwhile, the JV was still subject to final agreement by all parties. According to Turkey’s Koç Holding on Friday (via Automotive News Europe), “the timing is not appropriate for a battery cell investment.”
The company blamed “the current pace of electric vehicle adoption” as the reason. Koç added, “Ford and Koc Holding will remain committed to support electric vehicle production at Ford Otosan’s Kocaeli plant.”
It will “evaluate potential battery cell investments in the future in line with the dynamics of the electric vehicle market.”
The American automaker and Koç have worked together for almost 60 years, including building Transit vans through the Ford Otosan joint venture. It will begin building E-Transit and electric vans for VW as part of the automaker’s collaboration.
LGES also supplies batteries from its Poland plant for the Ford Mustang Mach-E and E-Transit. The battery giant said the three partners mutually agreed to drop the plans due to the “current pace of consumer electrification adoption.”
Electrek’s Take
Is the pace of EV adoption slowing? There’s been a lot of discussion on the topic lately.
The downbeat outlook is over fears that higher interest rates could cut into consumer buying power next year in Europe and China.
Meanwhile, pure EV makers, including Tesla, BYD, and Rivian, continue their hot streaks as EV adoption climbs globally.
Other automakers that were earlier to adopt EVs, including Volvo and Hyundai, expect the momentum to continue with new exciting electric models launching next year. So, is it the market? With newer, advanced electric models on the market, some brands are already getting squeezed out.
EV leaders, including Tesla and BYD, have drastically cut prices all year, forcing others to do the same. The only difference is Tesla and BYD can afford lower margins. Can others afford widening losses?
The adoption of EVs will continue climbing year-over-year. Automakers that put the early effort in are already reaping the rewards. Continuing to push back investments in favor of the present will be costly in the future.
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GreenPower Motor Company says it’s received three orders for 11 of its BEAST electric Type D school buses for western state school districts in Arizona, California, and Oregon.
GreenPower hasn’t made the sort of headline-grabbing promises or big-money commitments that companies like Nikola and Lion Electric have, but while those companies are floundering GPM seems to be plugging away, taking orders where it can and actually delivering buses to schools. Late last year, the company scored 11 more orders for its flagship BEAST electric school bus.
As far as these latest orders go, the breakdown is:
seven to Los Banos Unified School District in Los Banos, California
two for the Hood River County School District in Hood River, Oregon
two for the Casa Grande Elementary School District in Casa Grande, Arizona
Those two BEAST electric school buses for Arizona will join another 90-passenger BEAST that was delivered to Phoenix Elementary School District #1, which operates 15 schools in the center of Phoenix, late last year.
“As school districts continue to make the change from NOx emitting diesel school buses to a cleaner, healthier means of transporting students, school district transportation departments are pursuing the gold standard of the industry – the GreenPower all-electric, purpose-built (BEAST) school buses,” said Paul Start, GreenPower’s Vice President of Sales, School Bus Group. “(The) GreenPower school bus order pipeline and production schedule are both at record levels with sales projections for (2025) set to eclipse the 2024 calendar year.”
GreenPower moved into an 80,000-square-foot production facility in South Charleston, West Virigina in August 2022, and delivered its first buses to that state the following year.
Electrek’s Take
Since the first horseless carriage companies started operating 100 years ago (give or take), at least 1,900 different companies have been formed in the US, producing over 3,000 brands of American automobiles. By the mid 1980s, that had distilled down to “the big 3.”
All of which is to say: don’t let the recent round of bankruptcies fool you – startups in the car and truck industry is business as usual, but some of these companies will stick around. If you’re wondering which ones, look to the ones that are making units, not promises.
While some recent high-profile bankruptcies have cast doubt on the EV startup space recently, medium-duty electric truck maker Harbinger got a shot of credibility this week with a massive $100 million Series B funding round co-led by Capricorn’s Technology Impact Fund.
It’s been a rough couple of weeks for fledgling EV brands like Lion Electric and Canoo, but box van builder Harbinger is bucking the trend, fueling its latest funding round with an order book of 4,690 vehicles that’s valued at nearly $500 million. Some of the company’s more notable customers including Bimbo Bakeries (which owns brands like Sara Lee, Thomas’, and Entenmann’s) and THOR Industries (Airstream, Jayco, Thor), which is also one of the investors in the Series B.
The company plans to use the funds to ramp up to higher-volume production capacity and deliver on existing orders, as well as build-out of the company’s sales, customer support, and service operations.
“Harbinger is entering a rapid growth phase where we are focused on scaling production of our customer-ready platform,” said John Harris, co-founder and CEO. “These funds catalyze significant revenue generation. We’ve developed a vehicle for a segment that is ripe for electrification, and there is a strong product/market fit that will help fuel our upward trajectory through 2025 and beyond.”
The company has raised $200 million since its inception in 2021.
There is no state more associated with cars and car culture than Michigan – and the state that’s home to the Motor City has just taken a huge step into the future with the deployment of its first-ever all electric police vehicle.
The 2024 Ford Mustang Mach-E patrol vehicle is assigned to the Michigan State Police State Security Operations Section, and will be to be used by armed, uniformed members of the MSP specializing in general law enforcement and security services at state-owned facilities in the Lansing, MI area.
“This is an exciting opportunity for us to research, in real time, how a battery electric vehicle performs on patrol,” says Col. James F. Grady II, director of the MSP. “Our state properties security officers patrol a substantially smaller number of miles per day than our troopers and motor carrier officers, within city limits and at lower speeds, coupled with the availability of charging infrastructure in downtown Lansing, making this the ideal environment to test the capabilities of a police-package battery electric vehicle.”
In those tests, the EVs have impressed – but the MSP has been hesitant to commit to a BEV until now. “We began testing battery electric vehicles in 2022, but up until now hybrids were the only alternative fuel vehicle in our fleet,” said Lt. Nicholas Darlington, commander of the Precision Driving Unit. “Adding this battery electric vehicle to our patrol fleet will allow us to study the vehicle’s performance long-term to determine if there is a potential for cost savings and broader applicability within our fleet.”