LG Energy Solution, Ford sign 109 GWh EV battery deal

South Korean battery maker LG Energy Solution (LGES) has reached agreements to supply batteries for US automaker Ford Motor Company’s commercial vehicles. 

LGES will deliver 34 GWh of batteries from 2026 to 2030 and an additional 75 GWh from 2027 to 2032 under two distinct contracts.

The total value of these contracts is estimated to be at least 13 trillion won (around USD 9.5 billion) based on last year’s market prices, according to media reports.

LGES plans to manufacture these batteries at its plant in Poland, starting in 2026. 

The batteries may be used in Ford’s new commercial EV, the E-Transit.

 “These agreements attest to our experience and expertise in powering commercial vehicles with innovative battery technologies designed to handle extreme user environments,” LGES CEO Kim Dong-myung said. “Capitalizing on our local production capacity, we will secure leadership in the European market and deliver unmatched value to our customers through advanced battery technologies that effectively address diverse needs.”

The two companies also agreed that batteries for the current Ford Mustang Mach-E will be produced at LG Energy Solution’s Michigan facility in 2025, instead of Poland, to enhance business efficiency and capitalize on competitive market conditions, such as the IRA tax credits, according to a media release.

In February 2023, the two companies signed a MOU to establish a joint venture in Turkey, aimed at creating a 25 GWH plant with plans to begin mass production in 2026. However, the non-binding agreement was terminated in November.  

The European market for commercial EVs is growing rapidly, with half of all commercial vehicles in the region expected to be battery-powered by 2030, as per global research firm LMC Automotive.

Currently, LGES operates battery cell manufacturing plants in South Korea, Poland, China, Indonesia and the United States.