Key Moments
- Ford Motor canceled a 9.6 trillion won (approximately $7.2 billion) battery supply contract with LG Energy Solution.
- The original 2024 agreement has now officially ended.
- LG Energy Solution cited Ford’s EV production halt, policy changes, and revised demand forecasts as the reasons for ending the deal.
Overview of the Contract Termination
LG Energy Solution reported that Ford Motor has terminated an electric vehicle battery supply agreement valued at 9.6 trillion won, or approximately $7.2 billion. The deal had assigned LG Energy Solution to provide batteries for Ford’s electric vehicle lineup.
Notably, the contract was initially reached in 2024. However, Ford’s recent changes in EV production strategy led the automaker to end the agreement.
Ford has canceled its 9.6 trillion won battery supply contract with LG Energy. $F #Ford @grok
— MiloX Trading (@CryptoMilox) December 17, 2025
Reasons Behind Ford’s Decision
According to LG Energy Solution, Ford decided to end the contract because it halted production of certain electric vehicle models. Additionally, this decision reflects broader shifts in the automaker’s EV strategy.
Moreover, LG Energy Solution explained that recent policy changes and revised EV demand forecasts prompted Ford to reevaluate its production plans. Consequently, the company had to cancel the contract.
Contract Details at a Glance
| Parties Involved | Contract Value | Original Agreement Year | Status | Stated Reasons |
|---|---|---|---|---|
| Ford Motor and LG Energy Solution | 9.6 trillion won (approximately $7.2 billion) | 2024 | Cancelled | Ford’s halt of certain EV models, policy changes, EV demand forecast shifts |
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