Shares of LG Energy Solution fell as much as 7.6% in morning trade on Thursday after the South Korean battery maker said Ford Motor had cancelled an electric vehicle battery supply agreement, underscoring growing uncertainty around global EV demand.
LG Energy Solution said in a regulatory filing that Ford terminated the contracts after deciding to halt production of some electric vehicle models, citing policy changes and a weaker outlook for EV adoption. The decision reflects broader adjustments by Ford in response to shifts under the Trump administration and slower-than-expected growth in battery-electric vehicle sales.
The battery maker said it had signed two contracts in October last year to supply EV batteries to Ford’s European operations, with deliveries scheduled to begin in 2026 and 2027.
Ford earlier this week said it would take a $19.5 billion writedown and cancel several electric vehicle programmes, one of the clearest signs yet of a retreat by a major automaker from aggressive EV expansion plans. The company has said it will scale back investment in fully electric vehicles and place greater emphasis on hybrids and extended-range electric vehicles (EREVs).
Analysts said the cancellation could weigh on LG Energy Solution’s medium-term outlook. Because the contract was due to start in January 2027, they noted it would be difficult to quickly secure replacement orders, making delays in improving utilisation rates at the company’s European battery plant in 2027 likely.
