FORD’S TURN TO DEAL WITH POSCO?

We all know now that Ford has come up with an agreement with a battery component manufacturer for a new plant in Quebec. Latest news shows that this important automaker is engaged in talks with Posco Chemicals looking at investing in facilities that would produce cathode-active or anode materials for electric vehicle batteries.

Yet, South Korea-based Posco is already speaking with General Motors and Stellantis in such terms. But it remains unclear if the projected plants would produce the same materials or types of materials. Nonetheless, one thing is certain, all these facilities are set to be built in North America. The reason is that the passage of the American Inflation Reduction Act involves the strict requirements that EV vehicle assembly plants and battery assembly sites be in North America for consumers to get tax credits up to $7500 per vehicle purchase. Ford’s EV division, The Blue Oval, is supposed to reach a 600,000 annual EV production by late 2023 aiming at 2 million by 2026.