Ford drops billion-dollar battery collaboration with LG Energy Solution

South Korea’s LG Energy Solution said on Wednesday that a major battery supply agreement with Ford Motor Co. has been terminated after the US automaker decided to revise its electric vehicle strategy. Ford issued a cancellation notice for the contract, which was valued at about 9 trillion won ($6.09 billion), according to Pulse, the English service of Maeil Business News Korea.

The cancelled deal involved the supply of 75 gigawatt-hours of batteries to Ford over six years, with deliveries planned between 2027 and 2032. The contract accounted for around 28.5 per cent of LG Energy Solution’s recent annual revenue.

In a regulatory filing, LG Energy Solution said the termination followed Ford’s decision to halt production of certain EV models amid changes in policy conditions and a weaker outlook for EV demand.




The two companies had earlier outlined a broader battery supply plan. In October 2024, they agreed on a long-term arrangement worth 13 trillion won ($8.86 billion) to supply batteries for about one million electric vehicles, split into two phases. While the first phase has now been cancelled, the second phase covers the supply of 34 gigawatt-hours of batteries between 2026 and 2030, to be produced in Poland and used in Ford’s E-Transit electric delivery vans.

An LG Energy Solution official said some projects in the order pipeline were dropped as Ford adjusted its electrification plans and rebalanced its portfolio. Ford has since shifted its focus towards hybrid and internal combustion models, following the rollback of EV tax incentives under the Donald Trump administration. The automaker is also prioritising smaller, more affordable electric vehicles and energy storage systems, citing profitability challenges for larger EVs.