🥔 EV Battery Investments

Who’s In, Who’s Out, and Who’s Still Playing Hot Potato?

February 06, 2025

The Gist

  • Volvo: Took full control of NOVO Energy for zero dollars after Northvolt’s bankruptcy. Now they need a new investor to make the Gothenburg factory useful.

  • Ford: Bracing for $5.5B in EV losses but still dropping $9.63B on battery plants in Kentucky and Tennessee, while shifting focus to hybrids and delaying some EV models.

  • Toyota: Finally getting serious—spending $14B on a North Carolina battery plant and launching a fully-owned Shanghai EV factory.

  • GM: Selling off a Michigan battery plant to LG for $1B, but still in the EV game.

Musical Electric(?) Chairs

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The EV battery space is looking a little like musical chairs right now—except some automakers are pulling up more seats while others are sneaking out the back door. Investments, divestments, factory retoolings—every week brings another round of moves that will shape the future of EV production. Let’s break down where things stand.

Volvo and Northvolt: A Breakup Without the Messy Alimony

Volvo Cars just took full control of its joint battery venture, NOVO Energy, after Northvolt—a company once hyped as Europe’s great battery hope—filed for Chapter 11 bankruptcy. How much did Volvo pay for Northvolt’s 50% stake? A whopping 0 Swedish crowns (yes, zero).

So, what’s next? The Gothenburg battery factory, which was supposed to start production in 2026, is now looking for a new investor. Volvo CEO Jim Rowan is keeping the building "wind and waterproof" while they decide whether to sell it, repurpose it, or just stare at it for a while. (Reuters)

Ford: Betting Big on Batteries While Bracing for EV Losses

Ford is not having the smoothest ride in EV land. The company is projecting up to $5.5 billion in EV losses for 2025, largely due to the high costs of making battery-powered cars at scale. But they’re not bailing on the game—they’re just playing it smarter.

  • Scaling back on some new EV models while going all-in on hybrids.

  • Cutting costs by $1.4 billion.

  • Investing in a $9.63 billion battery factory project with SK On in Kentucky and Tennessee.

  • Developing a mid-sized electric pickup (read: affordable) set to hit the market in 2027.

Ford CEO Jim Farley says the company is still committed to EVs but isn't willing to burn cash like it’s 2021. "We’re going to walk before we run," he told analysts. (Reuters, AP News)

Toyota: Playing Catch-Up With Tesla in China & North Carolina

Toyota has finally decided that EVs might actually be a thing. The automaker is making two big moves:

  • Building a $14 billion battery plant in North Carolina, set to start shipping batteries for North American models this April.

  • Opening a new Shanghai EV factory under a fully-owned Toyota subsidiary, breaking away from its previous reliance on Chinese joint ventures.

With plans to pump out 100,000 EVs per year in China by 2027, Toyota is following the Tesla Shanghai Gigafactory playbook. Better late than never? (AP News, Business Insider)

GM: Cutting Ties While Keeping the Lights On

GM is making some serious cost-cutting moves, offloading its Lansing, Michigan battery plant stake to LG Energy Solution for an estimated $1 billion. The plant was nearly complete, but GM decided that holding onto its share wasn't worth the long-term expense.

Does this mean GM is out of the EV game? Not quite. They’re still launching new EV models and expanding production, just with a little less battery baggage. (Reuters)

Who’s Doubling Down vs. Who’s Backpedaling?

  • Volvo: Keeping its battery factory, but its future is TBD.

  • Ford: Bleeding money on EVs but still going all-in on battery plants.

  • Toyota: Late to the EV party, but now building batteries in both China and the U.S..

  • GM: Selling off battery plant stakes but still moving forward with EV production.

With so many automakers shifting gears (don’t worry, we still hate that phrase), one thing is clear: EV investments aren’t stopping—but they are getting a lot more strategic.

Sources:

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