- Ford ended a $6.5B battery deal with LG due to EV demand.
- LG disclosed cancellation in a regulatory filing this past week.
- The deal was set to power over 500,000 Ford EVs per year.
Just days after dialing back its electric vehicle plans, and barely a week after abandoning its $11.4 billion battery venture with South Korean firm SK On, Ford has now cancelled another high-stakes battery deal. The automaker has scrapped a $6.5 billion agreement with LG Energy Solution, citing shifting market conditions and a cooling appetite for electric vehicles.
Read: Ford Pulled The Plug On More EVs Than You Realize
The cancellation came to light in a regulatory filing made by LG in South Korea. It lands shortly after Ford outlined a sharp pullback in its EV rollout, including the decision to shelve the all-electric F-150 Lightning. The $6.5 billion figure represents roughly a third of LG’s total revenue from the previous year.
The Scale Behind the Deal
Ford and LG originally signed the deal in October 2024. Under its terms, LG committed to supplying Ford with 34 GWh of batteries between 2026 and 2030, enough to power around half a million EVs annually, assuming each one carries a 75 kWh battery pack.
Beyond that, LG was also set to deliver an additional 75 GWh of batteries for Ford’s commercial vehicle lineup between 2027 and 2032. These packs were to be built at LG’s manufacturing plant in Poland, then fitted into vehicles destined for the European market.
In its regulatory filing, LG said, “this matter concerns the counterparty’s [Ford’s] decision to discontinue the production of certain electric vehicle (EV) models due to recent policy changes and shifts in EV demand forecasts, and the subsequent notice of contract termination.”
EV Demand Runs Cold
Since President Donald Trump returned to the White House for his second term, the EV market has quickly undergone a significant shakeup. Demand for EVs in the US remained strong through the first nine months of the year, but sales collapsed the moment the $7,500 federal EV tax credit was axed.
Also: The EU Blinked And Gas Cars Live To See Another Generation
More recently, the Trump administration has loosened fuel economy regulations, encouraging carmakers like Ford to build more ICE models. On top of that, the European Commission softened its stance on zero-emissions mandates, most notably by proposing a 90 percent CO₂ reduction target for new vehicles by 2035, rather than a full ban on internal combustion engines.
Ford chief executive Jim Farley recently said he expects EV sales to fall by as much as 50 percent in the US due to these key policy changes.
