Ford terminates $6.5B battery deal with South Korea's LG Energy Solution

ISTANBUL

US vehicle giant Ford has cancelled an electric vehicle (EV) battery-supply deal worth about 9.6 trillion won ($6.5 billion) with South Korea's LG Energy Solution (LGES), the South Korean firm announced Wednesday.

In a regulatory statement, LGES said the termination came after Ford chose to discontinue various EV models owing to policy changes and changes in the outlook for EV demand.

In October 2024, LGES entered into two agreements to provide Ford Motor with EV batteries in Europe beginning in 2026 and 2027.

On Monday, Ford announced that it will take a $19.5 billion write-down and is discontinuing multiple EV models, in an instance of the auto industry's withdrawal from battery-powered cars in reaction to the Trump administration policies and declining demand for EVs.

SK On, a South Korean battery manufacturer, announced this week that it has opted to terminate its joint venture with Ford for their joint battery plants in the US.

To construct their joint battery factories in the US, SK On and Ford had committed $11.4 billion in 2022.

ISTANBUL

In a regulatory statement, LGES said the termination came after Ford chose to discontinue various EV models owing to policy changes and changes in the outlook for EV demand.

In October 2024, LGES entered into two agreements to provide Ford Motor with EV batteries in Europe beginning in 2026 and 2027.

SK On, a South Korean battery manufacturer, announced this week that it has opted to terminate its joint venture with Ford for their joint battery plants in the US.

To construct their joint battery factories in the US, SK On and Ford had committed $11.4 billion in 2022.