Citing policy shifts, weak demand and model cancellations, Ford’s EV reset continues as it calls off a $6.5 billion battery deal with LG Energy Solution.
LG Energy Solution (LGES) has confirmed that Ford Motor has cancelled an electric vehicle (EV) battery supply agreement valued at about 9.6 trillion won ($6.5 billion). The South Korean battery maker disclosed the termination in a regulatory filing on Wednesday, December 17, 2025.
According to LGES, Ford issued a formal notice after deciding to halt production of certain electric vehicle models. The automaker cited policy changes and a weaker outlook for EV demand as key reasons behind the move.
The agreements were signed in October last year. They covered the supply of EV batteries for Ford’s European operations, with deliveries scheduled to begin in 2026 and 2027. LGES did not provide further details on the volumes involved or whether alternative customers would be pursued.
The decision comes amid a broader slowdown in global EV investment. Earlier this week, Ford said it would take a $19.5 billion writedown and discontinue several electric vehicle programmes.
The company described it as part of a strategic reset in response to softer consumer demand and changes in government policy under the Trump administration.
Ford’s retrenchment has had ripple effects across its battery partners. Last week, South Korea’s SK On said it had decided to end its joint venture with Ford for battery manufacturing plants in the United States.
The two companies had announced the joint project in 2022. They planned to invest $11.4 billion to build battery factories aimed at supporting Ford’s North American EV production.
Industry analysts say battery makers are facing rising uncertainty as carmakers delay or scale back electrification plans. Falling incentives, shifting regulations and concerns over profitability have led several manufacturers to reassess timelines and investments.
LGES has not commented on how the cancellation will affect its future revenue forecasts. However, the company has previously said it remains focused on long-term demand for electric vehicles and energy storage solutions.
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