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South Korean energy company LG Energy Solutions suffered a major blow after Ford Motor Company suspended its long-term contract to supply electric vehicle batteries. The deal was worth approximately 9.6 trillion won ($6.5 billion) and represented about 28% of LG Energy's annual revenue.
The contract, which was set to run from 2027 to 2032, involved battery cells and modules manufactured in Poland and shipped to Ford's electric vehicles in Europe, including the new Ford Transit van. However, Ford has now decided to halt production of some electric vehicle models due to declining demand and policy changes.
LG Energy affirmed its desire to maintain a long-term partnership with Ford, but the contract termination has put it under significant pressure. Ford, for its part, has shifted its strategy, focusing on increasing production of hybrid and conventional vehicles after Trump's removal of tax breaks for electric vehicles.
Ford has reduced production of large electric vehicles like the F-150 Lightning, focusing instead on trucks, minibuses, affordable electric cars, and energy storage systems. This move reflects the slowing electric vehicle market and the restructuring of major companies.
source: kedglobal
The contract, which was set to run from 2027 to 2032, involved battery cells and modules manufactured in Poland and shipped to Ford's electric vehicles in Europe, including the new Ford Transit van. However, Ford has now decided to halt production of some electric vehicle models due to declining demand and policy changes.
LG Energy affirmed its desire to maintain a long-term partnership with Ford, but the contract termination has put it under significant pressure. Ford, for its part, has shifted its strategy, focusing on increasing production of hybrid and conventional vehicles after Trump's removal of tax breaks for electric vehicles.
Ford has reduced production of large electric vehicles like the F-150 Lightning, focusing instead on trucks, minibuses, affordable electric cars, and energy storage systems. This move reflects the slowing electric vehicle market and the restructuring of major companies.
source: kedglobal
