South Korea’s LG Energy Solution terminates $9.8b EV battery-supply deal with Ford
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The news: Ford Motor Company has cancelled a 9.6 trillion South Korean won ($9.83 billion) battery agreement with LG Energy Solution as the carmaker rolls back its electric vehicle ambitions.
The context: LG said that the deal termination followed a notice from Ford after the automaker decided to halt production of some EV models due to policy changes and shifts in outlook for EV demand.
LG Energy Solutions had signed two battery supply agreements with Ford in October last year to supply the carmarker’s European arm beginning in 2026 and 2027.
Earlier this week Ford said that it would incur a USD19.5 billion writedown, tied largely to its EV business in the face of shrinking demand.
Also this week, the European Commission backed away from what had been the globe’s most ambitious timeline for the phasing out of internal-combustion engines.
The sources: Reuters, Bloomberg, Chosun Daily
