December 18, 2025 – On Wednesday local time, South Korea’s LG Energy Solution disclosed that Ford Motor has terminated an electric vehicle (EV) battery supply agreement worth approximately KRW 9.6 trillion.
The South Korean battery maker stated in a regulatory filing that the termination came after receiving a notification from Ford. Previously, due to policy adjustments and changes in the expected demand for electric vehicles, the American automaker had decided to suspend the production of some of its EV models.
In October of the previous year, LG Energy Solution signed two contracts, planning to supply EV batteries to Ford’s European operations starting from 2026 and 2027 respectively.
On Monday this week, Ford announced that it would record an asset write-down of USD 19.5 billion and halt the production of multiple EV models. This move serves as a prime example of the automotive industry scaling back its electrification business in response to policies from the Trump administration and the sluggish demand for electric vehicles.
Last week, another South Korean battery manufacturer, SK On, announced its decision to end a joint venture project with Ford to build a battery factory in the United States. In 2022, SK On and Ford had invested USD 11.4 billion to establish the joint battery plant in the US.
