South Korean battery manufacturer LG Energy Solution Ltd (LGES) has revealed in a regulatory filing that it has been notified by Ford Motor Company of the cancellation of their KRW 9.6 trillion (US$ 6.5 billion) battery supply contract signed in October last year. The contract was for the supply of 109 gigawatt-hours (GWh) of nickel-cobalt-manganese (NCM) batteries between 2026 and 2032 from its plant in Poland, for fitment mainly in Ford light commercial vehicles (LCVs).

LGES said in a statement: “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.”

Earlier this week, Ford announced a US$ 19.5 billion one-off charge as it looks to reshape its EV strategy, pulling back from some larger battery electric vehicle (BEV) models and shifting investment towards hybrids, and extended-range vehicles.

The US automaker confirmed the moves are intended to align capital spending more closely with customer demand and higher-return opportunities, while setting out a route to profitability for its Model e EV unit by 2029, with yearly improvements anticipated from 2026.

Ford president and CEO Jim Farley said in a statement: “This is a customer-driven shift to create a stronger, more resilient and more profitable Ford. The operating reality has changed, and we are redeploying capital into higher-return growth opportunities.”