Ford Cancels USD6.5 Billion EV Battery Deal

2025-12-18 07:47:42

(MENAFN) US automotive giant Ford has terminated an electric vehicle (EV) battery supply agreement valued at approximately 9.6 trillion won ($6.5 billion) with South Korea's LG Energy Solution (LGES), the South Korean company revealed on Wednesday.

According to a regulatory filing, LGES explained that the cancellation resulted from Ford's decision to halt several EV models due to shifts in policy and evolving forecasts for EV demand.

Back in October 2024, LGES had signed two contracts to supply EV batteries to Ford for vehicles in Europe, starting in 2026 and 2027.

On Monday, Ford reported that it would record a $19.5 billion write-down and discontinue multiple EV models. This move highlights the automotive industry's retreat from battery-powered vehicles, driven by both Trump-era policies and a weakening demand for EVs.

Meanwhile, South Korean battery producer SK On disclosed this week that it would end its joint venture with Ford for their collaborative battery manufacturing plants in the United States.

SK On and Ford had previously pledged $11.4 billion in 2022 to develop these joint battery facilities in the US.

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