South Korean Battery Firms Reassess Investments Amid Global Market Shifts
EcoPro BM Halts Quebec Cathode Material Factory Construction After Ford’s Withdrawal
South Korean battery manufacturers are reevaluating their global investment strategies in response to evolving market conditions and geopolitical factors.
Industry sources said on April 21 that EcoPro BM has suspended construction of its cathode material factory in Quebec, Canada, following Ford’s withdrawal from the joint venture in November 2024. The project, initially announced in August 2023, represented a planned investment of 1.2 trillion won.
This decision by EcoPro BM reflects a broader trend of strategic adjustments within the South Korean battery industry. LG Chem recently redistributed its separator business workforce to improve production efficiency. The company is also reassessing plans for a separator fabric production line in Hungary with Japan’s Toray, a project initially announced in 2021 with a 1 trillion won investment. During a February earnings call,
LG Chem stated it was,
comprehensively reviewing the expansion of the Hungarian joint venture and seeking ways to strengthen business competitiveness.
POSCO Holdings has also been impacted by these shifting dynamics, dissolving a nickel joint venture with China’s CNGR. This decision was influenced by rapidly changing internal and external conditions, including increased pressure from the Trump administration on China. Furthermore, POSCO Future M canceled a 1.2 trillion won investment for a precursor factory in Pohang with China’s Huayou Cobalt in September of last year.
The potential abolition of the $7,500 IRA EV tax credit by President Trump and the imposition of a 25% tariff on imported cars, as reported by IBK Securities researcher Lee Hyun-wook, could further impact EV demand in the U.S. market. According to Lee, these potential policy changes could lead to a decrease in EV demand, particularly for vehicles produced outside the U.S.
While the global electric vehicle market has experienced rapid growth, recent policy shifts and economic uncertainties necessitate a reassessment of investment strategies by companies like EcoPro BM and LG Chem. The postponement of EcoPro BM’s CAM9 cathode material factory operations in Pohang until the end of 2026 further exemplifies this trend.
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South Korean Battery Firms Reassess Investments Amid Global Market Shifts, source
