SEOUL, December 17 (AJP) -South Korea's LG Energy Solution said Wednesday it has terminated an electric vehicle battery supply contract with Ford Motor worth an estimated 9.6 trillion won ($6.5 billion), after the U.S. automaker decided to halt production of some EV models amid shifting policy conditions and a softer demand outlook.
In a regulatory filing after the stock market closure, the South Korean battery maker said the termination followed formal notice from Ford, which recently reassessed its EV production plans in response to changes in the policy environment and cooling expectations for electric vehicle demand.
The contract, originally disclosed on Oct. 15, 2024, was signed on Oct. 14 and covered battery supplies for multiple Ford EV models.
LG Energy Solution said the disclosed termination amount was calculated by applying battery prices at the time of contract signing to the originally agreed supply volume, making the figure an estimate rather than a realized loss.
The company added that the reference to recent sales in the filing was based on its consolidated financial statements as of the end of 2023, while the termination date reflects the day it received the cancellation notice from Ford.
Ford has been scaling back its EV ambitions as costs rise and demand growth proves slower than initially expected.
The automaker recently canceled or delayed several EV models, signaling a more cautious rollout strategy amid weaker consumer uptake, margin pressure and lingering infrastructure constraints.
Shares of LG Energy Solution closed Wednesday, mildly down 0.6 percent at 415,500 won after a 6-percent slide on the previous day.
LG Energy Solution, one of the world’s largest EV battery suppliers with clients spanning North America, Europe and Asia, has recently emphasized efforts to protect its intellectual property and diversify its customer base as competition intensifies and growth expectations moderate.
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