Ford Terminates $6.5 Billion LG Energy Deal After Retreating From EVs — And Retail Is Split

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Ford and LG Energy entered into a deal in 2024 to supply up to 109 gigawatt-hours of battery to the Dearborn, Michigan-based automaker through 2032.

  • Ford and LG Energy signed a $6.5 billion contract in 2024 to supply up to 34 gigawatt-hours of batteries between 2026 and 2030, along with 75 GWh for the automaker’s commercial vehicles between 2027 and 2032.
  • Ford stated that it will manufacture new gas and hybrid vans at its Ohio Assembly Plant and plans to hire thousands of new employees in the U.S. over the next few years.
  • The Dearborn, Michigan-based automaker also said that it would replace the F-150 Lightning with a new model that uses a gas-powered engine to recharge the battery.

Ford Motor Co. (F) has terminated a deal worth up to $6.5 billion with South Korea’s LG Energy Solutions, after retreating from the electric vehicle segment.

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According to a filing with South Korea’s Financial Supervisory Service (FSS), LG Energy stated that the termination was a result of Ford’s pivot away from electric vehicles.

Ford and LG Energy had signed a $6.5 billion contract in 2024 for the supply of up to 34 gigawatt-hours (GWh) of batteries between 2026 and 2030, along with 75 GWh for the automaker’s commercial vehicles between 2027 and 2032.

Ford shares were up 0.2% in Wednesday’s pre-market trade. Retail sentiment on Stocktwits around the company trended in the ‘bullish’ territory.

Ford’s Pivot Away From EVs

Ford announced a pivot away from electric vehicles on Monday, taking a $19.5 billion charge. The Dearborn, Michigan-based automaker stated that it would replace the F-150 Lightning with a new model that uses a gas-powered engine to recharge the battery.

Apart from this, the company will also scrap its upcoming electric truck codenamed T3. Ford also expects the share of hybrids, extended-range EVs, and EVs to rise to 50% by 2030, from 17% now.

Ford also stated that it will manufacture new gas and hybrid vans at its Ohio Assembly Plant and plans to hire thousands of new employees in the U.S. over the next few years.

The company stated that its $19.5 billion writedown will be spread through the fourth quarter (Q4), 2026 and 2027.

Retail Divided

Retail users on Stocktwits were divided about Ford’s pivot away from EVs. One user stated that the Dearborn-based company could not compete with Tesla Inc. (TSLA). “Elon is so far ahead of the competition,” they said.

Another user praised Ford’s decision to launch a hybrid version of the F-150 truck, saying people want trucks with a 700-mile range.

However, one user said they were outraged with the company’s leadership’s decision to retreat from EVs.

F stock is up 38% year-to-date and 37% over the past 12 months.

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