Ford Terminates $6.09 Billion Battery Supply Agreement with LG Energy Solution
LG Energy Solution announced the termination of a $6.09 billion battery supply agreement with Ford, following Ford's revised electric vehicle strategy. The deal, which involved 75 gigawatt-hours of battery supply over six years, accounted for about 28.5% of LG's recent annual revenue. Ford's decision comes amid a shift away from certain EV models and a focus on hybrid and internal combustion vehicles, influenced by changes in policy and market demand.
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LG Energy Solution reported the termination of a $6.09 billion battery supply agreement with Ford Motor Co., related to 75 gigawatt-hours of batteries over six years, planned for delivery from 2027 to 2032. This contract represented approximately 28.5% of LG's annual revenue.
The cancellation followed Ford’s decision to halt production of certain EV models amid shifts in policy and demand outlook. Earlier, the companies had a broader $8.86 billion supply plan for one million EVs, of which the first phase is now cancelled. Ford is focusing on hybrid and internal combustion models, alongside smaller, affordable EVs and energy storage solutions.
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