LG Energy to supply 109 GWh of EV batteries to Ford by 2032

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LG Energy to supply 109 GWh of EV batteries to Ford by 2032

Published: 15 Oct. 2024, 18:29 Updated: 15 Oct. 2024, 18:40

CHO YONG-JUN
cho.yongjun1@joongang.co.kr

Audio report: written by reporters, read by AI

LG Energy Solution's battery manufacturing plant in Poland [LG ENERGY SOLUTION]

LG Energy Solution will provide Ford Motor with 109 gigawatt-hours (GWh) worth of EV batteries for its commercial vehicles by 2032.

The Korean battery maker will manufacture nickel-cobalt-aluminum (NCA) battery cells and modules for Ford’s E-Transit light commercial vehicles at its factory in Wroclaw, Poland, under two new supply agreements the two companies announced Tuesday. The volume is enough to power roughly 1.2 million of the electric vans.

A total of 34 GWh of batteries will ship from 2026 to 2030 and 75 GWh from 2027 to 2032.

“Our deal with Ford proves LG Energy Solution’s strong technological competitiveness even in the electric commercial vehicle market,” LG Energy Solution CEO Kim Dong-myung said in a news release Tuesday.

Ford’s Transit van was the most-sold light commercial vehicle in the world for the six consecutive years between 2018 and 2023. The model and its variations have been longtime bestsellers in Europe.

LG Energy Solution and Ford Motor currently operate a battery-related joint venture, Ultium Cells, which provides batteries for Ford’s Mach-E electric SUV. The construction of the company's third plant in Michigan has been slowed in response to the recent cooling in EV demand.

The two companies agreed to build another joint venture in Ankara, Turkey, for the manufacturing of batteries last year but scrapped the plan in favor of their existing facilities. The Ankara factory was expected to produce at least 25 GWh per year.

BY CHO YONG-JUN [cho.yongjun1@joongang.co.kr]