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Investing.com-- Ford Motor (NYSE:F) is scaling back more of its electric vehicle (EV) ambitions, allowing Nissan (OTC:NSANY) Motor (TYO:7201) to use part of its Kentucky battery plant amid slower-than-expected demand, The Wall Street Journal reported on Tuesday, citing people familiar with the matter.
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In 2021, Ford announced two new battery plants in Kentucky as part of a $7 billion investment with South Korea’s SK On.
Currently, one of the two Kentucky battery factories is idle, while the other is partially active and will soon produce batteries for both Ford and Nissan, the report said.
The move reflects broader retrenchment in the EV market as automakers face sluggish demand and rising costs.
Ford suspended its 2024 financial outlook earlier this month, citing tariff uncertainties, and has projected a $5 billion loss in its EV unit for this year.
For Nissan, the deal offers a path to U.S.-made batteries amid a $4.5 billion quarterly loss and tariff pressures on imports, the WSJ report stated.
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