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Ford Cancels $6.5 Billion LG Battery Deal as EV Strategy Shifts

The termination reflects Ford's shift toward lower-cost LFP batteries after a $19.5 billion EV write-down.

Overview

  • LG Energy Solution said it received formal notice from Ford canceling the contract, according to a regulatory filing in Seoul.
  • The scrapped agreement covered roughly 109 GWh of NCM cells from LG’s Poland plant for Ford light commercial vehicles between 2026 and 2032.
  • LG attributed the termination to Ford discontinuing certain EV models due to policy changes and a weaker demand outlook.
  • Ford’s realignment includes dissolving its U.S. battery joint venture with SK On and pursuing LFP production in Kentucky under CATL licensing within about 18 months.
  • The lost order equaled about 28.5% of LG Energy Solution’s prior-year revenue, analysts warned of delayed utilization gains at European plants into 2027, and Korean battery stocks fell sharply, with LGES down 8.9%.