Enchem Co., a South Korean battery material maker, has scrapped its plan to invest $143 million to build a plant in the US due to the protracted downturn in the world’s third-largest electric vehicle market, industry sources in Seoul said on Wednesday.
Enchem, the world’s No. 4 electrolyte manufacturer, has cancelled its plan to spend 200 billion won ($142.7 million) to construct a production base in Tennessee to supply the battery component to BlueOval SK LLC, a joint venture between South Korea’s battery maker SK On Co. and US automaker Ford Motor Co., the sources said.
Enchem had planned to provide electrolytes from the plant to BlueOval SK, but supply deals, which were expected to be signed last year, were repeatedly delayed.
An electrolyte that facilitates the movement of ions between the anode and cathode, enabling the battery to charge and discharge by transporting electrical charge in the form of ions, not electrons.
Enchem’s decision came as Ford’s EV business remained sluggish. Ford’s EV division has lost $12 billion in total, including $2.2 billion in the first half of 2025.
US ELIMINATES EV TAX CREDIT
US President Donald Trump’s policies to boost internal combustion engine vehicles also hurt the EV industry. The US administration eliminated the tax credit benefit of up to $7,500 for EV buyers starting this month.
Ford Chief Executive Officer Jim Farley said on Wednesday that the elimination and softening of emissions rules will sharply curtail EV demand in the US.
He predicted the share of zero-emission vehicles, which is currently around 10% of the domestic market, could fall by half.
The policies are expected to affect not only the EV industry but also the battery sector.
ALL REVISE US BUSINESS STRATEGIES
BlueOval SK, whose total capacity is likely to rise to 127 gigawatt-hours (GWh) by next year, is predicted to underutilize its facilities.
“All companies involved in the local EV value chain with Ford are now revising their strategies,” said an industry source in Seoul.
Instead of moving forward with the Tennessee project, Enchem plans to focus its investments on its Georgia facility, which supplies electrolytes to LG Energy Solution Ltd., and its Indiana plant, which serves Samsung SDI Co.
Sang Hoon Sung
uphoon@hankyung.com
Jongwoo Cheon edited this article.
