Enchem Co. scrapped plans for a 200 billion won ($143 million) manufacturing facility in Tennessee, abandoning a project designed to supply battery materials to Ford Motor Co.’s struggling electric vehicle operations, according to industry sources in Seoul.
The South Korean electrolyte producer, ranked fourth globally, intended the plant to serve BlueOval SK, the battery joint venture between SK On and Ford. Supply contracts anticipated last year never materialized as repeated delays mounted, the sources said.
Ford reported $5.1 billion in EV losses during 2024 and projects another $5 billion to $5.5 billion deficit this year. The automaker has postponed full production at its Tennessee assembly plant until 2027, citing weakening demand.
Companies throughout Ford’s EV supply network are reassessing their strategies, an industry source noted. Enchem will redirect capital toward its Georgia plant, which supplies LG Energy Solution, and its Indiana facility serving Samsung SDI.
The cancellation highlights mounting pressure on battery material suppliers as automakers recalibrate EV ambitions. While the US market added 17 million electric vehicles in 2024, growth has decelerated, with market share slipping to 7.4% in the second quarter from 8.1% last year.
Enchem, which operates facilities across Korea, Poland, China and the US, maintains expansion plans elsewhere despite the Tennessee pullback.
