Dow Chemical has sold its majority stake in electric vehicle battery maker Dow Kokam to an affiliate of Townsend Ventures, an investment company that is one of three remaining owners, Chemical & Engineering News reports.
The facility received $161 million in funding from the Department of Energy and $180 million in tax incentives from the state of Michigan, the publication reports.
The plant, which opened in 2012, had the capacity to produce lithium-ion batteries to power 30,000 all-electric vehicles. Sluggish demand from auto manufacturers kept the plant from reaching capacity, C&EN says.
Dow CEO Andrew N. Liveris told the publication that instead of batteries, Dow will focus on producing battery components such as coated anode and cathode materials.
Additionally, stocks in electric car company Tesla tumbled in November as news broke of a third Model S fire in less than two months.