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Ford Scraps $6.5 Billion EV Battery Contract With Korea’s LG


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https://www.detroitnews.com/story/business/autos/ford/2025/12/17/ford-scraps-6-5-billion-ev-battery-contract-with-south-koreas-lg/87813145007/

 

Quote

Ford Motor Co. canceled a $6.5 billion (9.6 trillion won) battery agreement with LG Energy Solution Ltd. as the Dearborn automaker continues rolling back its electric vehicle ambitions.

Ford notified LG of the canceled order on Wednesday, the South Korean company said in a regulatory filing in Seoul. The amount is equivalent more than a third of LG’s total revenue last year.

LG is the latest casualty of Ford’s retrenchment in EVs — the carmaker recently said it would take $19.5 billion in charges tied to the business and that it would scrap plans to make an electric F-Series truck. The company is also breaking up its U.S. battery venture with Korea’s SK Innovation Co.

Ford’s announcement this week kicked off a cascade of signals that the EV era is entering a more uncertain, more contested phase. The European Commission backed away from what had been the world’s most aggressive timeline for phasing out internal-combustion engines, granting manufacturers and consumers more time to move off gasoline.

Ford began cutting orders from battery suppliers last year to stem its losses from EVs, according to people familiar with the matter at the time.

LG Energy shares fell 0.6% to close at 415,500 won on Wednesday before the announcement. Ford stock was down 2.3% in early afternoon trading in New York.

 

 

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7 hours ago, rmc523 said:

Crazy

And the reason Farley is not in the firing line is because all of this electric future vision 

was what Bill Ford instructed him (and Jim Hackett) to get going with and make happen ASAP.


Once every couple of decades, Ford will strike out early in the hopes of scooping the market

but that’s a dangerous game when it goes wrong…… well, big BEVs and big batteries was wrong.


To me, the bigger mistake was defunding Ford Blue projects to pay for this giant bet,

now Farley realises that he needs more desirable suite of vehicles to stop the bleeding.

Edited by jpd80
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8 minutes ago, jpd80 said:

And the reason Farley is not in the firing line is because all of this electric future vision 

was what Bill Ford instructed him (and Jim Hackett) to get going with and make happen ASAP


Or the board.  We don't know what he was forced to do or not forced.  Some things he definitely owns like Oakville and he was too aggressive on many things.

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5 hours ago, akirby said:


Or the board.  We don't know what he was forced to do or not forced.  Some things he definitely owns like Oakville and he was too aggressive on many things.

I think the board takes their lead from Bill Ford,

he has a big say in the decisions made at Ford motor

because he represents the family and the controlling stock votes.

 

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19 hours ago, jpd80 said:

And the reason Farley is not in the firing line is because all of this electric future vision 

was what Bill Ford instructed him (and Jim Hackett) to get going with and make happen ASAP.


Once every couple of decades, Ford will strike out early in the hopes of scooping the market

but that’s a dangerous game when it goes wrong…… well, big BEVs and big batteries was wrong.


To me, the bigger mistake was defunding Ford Blue projects to pay for this giant bet,

now Farley realises that he needs more desirable suite of vehicles to stop the bleeding.

 

I think a lot of it came from Bill Ford too.  That's one of the reasons Fields was let go, because the EV investment wasn't enough.

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Just now, 92merc said:

One thing I don't recall seeing here is Ford is shifting it's battery production to produce batteries for energy storage.

 

https://planetdetroit.org/2025/12/ford-shifts-ev-battery-plans/

 

Hopefully Ford can make some money of that option.  Regain some of their spent money/effort.

 

It was posted, but may have gotten lost in the shuffle of some post merging.

 

Yeah, at least they're creating a plan B option, and since they'll have the plant, I'd assume they could switch it back to automotive uses if/when the market demands it.

Edited by rmc523
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