Ford Motor Company has terminated its previously announced agreement to purchase batteries from LG Energy Solution, valued at approximately 9.6 trillion won ($6.5 billion). The decision marks a setback in Ford’s electrification plans, following a broader pullback on their electric vehicle (EV) ambitions.
The deal, announced earlier, was intended to supply batteries for Ford’s growing lineup of electric models as part of its broader strategy to expand EV offerings and reduce reliance on traditional internal combustion engines. However, Ford recently announced a strategic shift, scaling back its EV expansion plans amid industry headwinds and market uncertainties.
LG Energy Solution confirmed the cancellation but did not specify detailed reasons beyond Ford’s revised EV strategy. Analysts suggest that Ford’s decision reflects a cautious approach in a competitive and rapidly evolving EV industry, where automakers are reassessing their investments and partnerships.
The move could impact LG’s plans for battery supply in North America, a region where EV demand continues to rise. Industry experts note that such cancellations highlight the shifting landscape of auto manufacturing, as automakers balance growth ambitions with economic and market realities.