Overview
- LG Energy Solution and Freudenberg Battery Power System mutually ended a 3.9 trillion-won supply deal, with LG noting FBPS is exiting the battery business and about $110 million of deliveries already completed remain unaffected.
- The Ford battery order cancellation disclosed earlier this month totaled 9.6 trillion won, taking December’s terminated contracts to roughly 13.5–13.6 trillion won, or about half of LG’s 2024 revenue.
- LG said it had not built specialized facilities or incurred related R&D for the canceled deals, so it expects no additional costs from the terminations.
- LG agreed to sell the Ohio plant’s building and fixed-asset components to Honda for about 4.22 trillion won, while the joint venture endures with LG continuing to operate the facility under existing governance.
- Ohio production has shifted into 2026 and the asset sale is expected to close on February 28, 2026, as Korean battery makers face pricing pressure from Chinese rivals and a shift toward lower-cost LFP chemistries.