"Ford sent a jolt through the American auto industry this week by scaling back its electric-vehicle ambitions and leaning harder into its core gas-truck business. The ripple effects of that are now being felt well beyond U.S. borders. The Dearborn automaker has canceled billions of dollars' worth of battery orders from South Korea's LG Energy Solution (LGES) and SK On. All of that now threatens thousands of jobs and could leave a lasting mark on the battery industry."
"In a regulatory filing cited by Korea's Yonhap News Agency, this is what LGES said about the cancelled battery order: "This matter concerns the counterparty'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. The $6.5 billion agreement, signed in October 2024, would have seen LGES supply 34 gigawatt-hours of batteries to Ford between 2026 and 203"
Ford scaled back its electric-vehicle ambitions and pivoted toward its core gas-truck business, prompting cancellations of large battery contracts. The automaker canceled billions of dollars in orders from South Korea's LG Energy Solution and SK On, endangering thousands of jobs and creating potential long-term consequences for the battery industry. Automakers typically lock in battery supply years ahead because designing and scaling high-voltage battery packs takes a long time. LGES cited counterpart decisions to discontinue certain EV models, policy changes, and shifts in EV demand forecasts in explaining the contract termination. Legal and market ripples are already emerging.
Read at insideevs.com
Unable to calculate read time
Collection
[
|
...
]