Ford Cancels USD6.5B Battery Deal with South Korea’s LGES
The South Korean battery manufacturer revealed in a regulatory filing that Ford's decision follows the automaker's cancellation of several EV models, driven by shifting policy landscapes and deteriorating demand forecasts for electric vehicles.
The now-defunct partnership, finalized in October 2024, comprised two separate contracts under which LGES would have begun delivering EV batteries to Ford Motor for its European operations starting in 2026 and continuing into 2027.
Ford announced Monday it would absorb a staggering $19.5 billion write-down while axing numerous electric vehicle models—a stark illustration of the automotive sector's retreat from battery-powered vehicles amid the Trump administration's policy framework and weakening consumer appetite for EVs.
The cancellation isn't isolated. SK On, another South Korean battery producer, revealed this week it has pulled the plug on its joint venture with Ford involving collaborative battery manufacturing facilities across the United States.
The SK On-Ford partnership had pledged $11.4 billion in 2022 toward building these shared battery production sites on American soil.
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