LG Energy Solution ends a major 9.6 trillion won ($6.5 billion) contract with Ford Motor for EV batteries. Ford halted production of select models due to policy shifts and weaker demand forecasts. The decision disrupts planned supplies from LG’s Poland facility.
Contract Details and Scope
The October 2024 agreement spanned 75 GWh from 2027-2032 and 34 GWh from 2026-2030. Batteries targeted Ford’s European commercial EVs produced at LG Energy Solution’s Wrocław plant. Termination covers the longer-term portion, valued at the full contract amount.
Triggers for Ford’s EV Pullback
Recent U.S. policy changes, including tax credit losses, prompted Ford to reassess EV output. Declining demand forecasts accelerated model cancellations. This reflects automakers’ strategic retreats amid hybrid preferences and market softening.
Supply Chain Ripples
LG disclosed the cancellation in a regulatory filing, with shares dropping sharply post-news. Battery giants face recalibrated pipelines as OEMs adjust volumes. The event highlights risks in long-term EV commitments during transition phases.
