Electric vehicle revolution: LG Energy Solution's 109 GWh battery supply deal with Ford is set to electrify the entire European commercial vehicle market by 2032
In a landmark partnership deal, LG Energy Solution signed two contracts with the Ford Motor Company on October 15 to supply batteries. The company will total up to 109 GWh of batteries through those agreements given to Ford for the electric commercial vans in Europe. Deliveries will start in 2026, and the contracts will last for about four to six years.
This partnership will mark a crucial milestone for both companies as they seek to set their stakes in the electric vehicle market. The advanced battery technology from LG Energy Solution will power Ford's electrified vans and will help the auto company shift its commercial vehicles to clean sources.
In addition, Ford and LG Energy Solution reached a deal on battery production for the Ford Mustang Mach-E. The company will move production from Poland to an LG Energy Solutions-owned facility in Michigan starting in 2025. This will aid changing circumstances and continue building business efficiency and the company's abilities to capitalize on market factors of this type, such as those incorporated within the US Inflation Reduction Act.
David Kim, chief executive of LG Energy Solution, also commented on the collaboration by noting that “These agreements are proof of our experience and expertise in powering commercial vehicles with innovative battery technologies designed to handle extreme user environments.” Kim additionally noted the strategic value of local production for the European market and then commented, “We will secure leadership in the European market and deliver unmatched values to our customers through advanced battery technologies that can help meet diverse needs.”
These contracts confirm the place of LG Energy Solution as a key player in the EV battery market. The company is spun off from LG Chem with over 30 years of experience in battery technology. It owns over 58,000 patents and operates facilities in North America, Europe, and Asia. To be sustainable, LG Energy Solution targets to achieve carbon neutrality by 2050.
All these deals with Ford represent another step in the strategy to dominate the EV battery sector while pushing forward on its sustainability goals. As for Ford, this partnership will help it in the incorporation of electric powertrains in its fleet and fulfil the growing demand for cleaner commercial vehicles in Europe.