Battery cells with the logo of LG Energy Solution are displayed at the company headquarters in Seoul, South Korea, April 23, 2024. REUTERS/Kim Hong-Ji

Ford cancels EV battery deal worth $6.5 billion with South Korea's LG Energy Solution

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SEOUL, Dec 17 : South Korea's LG Energy Solution said on Wednesday that Ford Motor has terminated an electric vehicle (EV) battery-supply deal worth about 9.6 trillion won ($6.50 billion).

The South Korean battery maker said in a regulatory filing that the termination followed a notice from Ford after the automaker decided to halt production of some EV models due to policy changes and shifts in outlook for EV demand.

Last October, LGES signed two contracts to supply EV batteries to Ford Motor in Europe starting in 2026 and 2027.

Ford said on Monday it will take a $19.5 billion writedown and is killing several electric-vehicle models in the most dramatic example yet of the auto industry's retreat from battery-powered models in response to the Trump administration's policies and weakening EV demand.

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Last week, South Korean battery maker SK On said it decided to end its joint venture with Ford for their joint battery factories in the United States.

In 2022, SK On and Ford invested $11.4 billion to build the joint battery plants in the United States.

($1 = 1,478.0600 won)

Source: Reuters

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