South Korea’s LG Energy Solution said on Friday it has agreed to terminate a 3.9 trillion won ($2.7 billion) battery supply contract with Germany’s Freudenberg Battery Power Systems, citing the partner’s decision to abandon its battery business.
In a regulatory filing, LG Energy Solution said the cancellation was made by mutual agreement after Freudenberg revised its business strategy. The move comes just a week after the battery maker disclosed the loss of another major contract, this time with U.S. automaker Ford Motor, involving an electric vehicle battery supply deal valued at around 9.6 trillion won.
Ford last week announced it would take a $19.5 billion writedown and discontinue several electric vehicle models, reflecting what the company described as a broader slowdown in EV demand and the impact of shifting U.S. policy under the Trump administration. “We are adjusting our EV strategy to better align with market realities,” Ford said at the time.
The two contract terminations mean LG Energy Solution stands to lose approximately 13.5 trillion won in expected revenue in less than 10 days, equivalent to more than half of its 25.62 trillion won in sales reported last year.
Separately, LG Energy Solution said on Wednesday it had agreed to sell a factory building and related assets in Ohio to Honda Development and Manufacturing of America for $2.86 billion, a move aimed at improving operational efficiency within their joint venture in the United States.