Is the global EV slowdown forcing carmakers to rethink big bets? Ford Motor has cancelled a $6.5 billion EV battery supply deal with South Korea’s LG Energy Solution. The move reflects policy changes and weaker EV demand affecting auto and battery industry investments.
Deal termination linked to EV strategy shift
South Korea’s LG Energy Solution said recently that Ford Motor has terminated an electric vehicle (EV) battery supply agreement worth about 9.6 trillion won ($6.50 billion). The announcement was made through a regulatory filing.
LG Energy Solution said the decision followed a notice from Ford after the automaker chose to halt production of some EV models. The move reflects changes in government policy and a shift in Ford’s outlook for future EV demand. The battery maker had signed two contracts with Ford last October to supply EV batteries for vehicles in Europe, with deliveries scheduled to begin in 2026 and 2027.
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Ford write-down and model cancellations
Ford said on Monday it will take a $19.5 billion writedown and cancel several electric vehicle models. This marks one of the clearest signs yet of the auto industry stepping back from battery-powered vehicles.
The company’s decision comes as the Trump administration’s policies and slowing consumer demand have created uncertainty around EV growth. Automakers are increasingly reassessing timelines, product plans, and capital spending linked to electric mobility.
Broader impact on battery partnerships
The setback is not limited to LG Energy Solution. Last week, South Korean battery maker SK On said it had decided to end its joint venture with Ford for battery factories in the United States.
In 2022, SK On and Ford had invested $11.4 billion to build joint battery plants in the US. Together, these developments underline growing caution among automakers and battery manufacturers as they adjust to changing market conditions and policy environments.