What is RA's exposure to the EV Battery industry and how will it react to the reduction in demand? Is RA still using AlixPartners as consultants?
From a recent automotive news article:
Overcapacity Ahead
AlixPartners speculates that global production of EV batteries will be roughly three times greater than demand for EVs in 2030. By that time, EV battery production capacity in North America is expected to roughly quadruple.
According to Nikkei Asia, many manufacturers are already scaling back their ambitious battery production plans. Ford, one of the most aggressive investors in U.S. battery manufacturing, is a prime example. The company is building a $5.8 billion facility in Kentucky with its partner SK On, which is expected to employ about 5,500 people by 2030.
However, the Blue Oval already reduced its planned battery capacity by 35 percent. It also recently halted production of the F-150 Lightning indefinitely due to dwindling demand in North America.
General Motors has also been forced to make changes. It has been confirmed that 1,550 workers at the battery plants it operates alongside LG Energy Solution in Ohio and Tennessee will be sacked due to “slower near-term EV adoption and an evolving regulatory environment.”
Nikkei Asia also reports that Panasonic opened a new battery factory in Kansas in July, but has yet to say when it will reach full-scale production. Initially, it was expected to hit this mark by the end of the 2026 fiscal year. However, as a major supplier to Tesla, it has been affected by the fall in demand for EVs as well.
Slowing EV sales in the States have led to the cancellation of some endeavors entirely. T1 Energy was planning to build a battery plant in Georgia, but has since canned the project.