LG Energy Solution said Ford Motor terminated a battery supply contract valued at ₩9.6 trillion ($6.5 billion), delivering another blow to Korean battery makers caught in the fallout of Detroit’s rapid retreat from electric vehicles.
The Seoul-based company disclosed the cancellation in a regulatory filing Wednesday, stating Ford ended the agreement after deciding to halt production of certain EV models. The contracts, signed in October 2024, would have supplied battery cells and modules for Ford’s European commercial vans starting in 2026 and 2027. LGES noted the terminated deal represented roughly 28.5% of its most recent annual revenue.
The termination follows Ford’s announcement Monday that it would record $19.5 billion in charges while killing several EV models, including the F-150 Lightning pickup and a next-generation electric truck codenamed T3. The Dearborn-based automaker cited weakening demand and shifts in the policy environment under the Trump administration.
For Korean battery suppliers, Ford’s pullback has become painful. SK On ended its manufacturing joint venture with Ford last week, dissolving an $11.4 billion partnership established in 2022. That breakup alone accounted for $6 billion of Ford’s announced writedown.
LGES shares fell 0.6% Wednesday after sliding 6% the previous session. Ford now expects its EV business to remain unprofitable until 2029 as it pivots toward hybrids and gas-powered models.
