LG Energy Solution to supply batteries for Ford vans in Europe
The battery supply deal involves a total volume of 109 GWh of batteries from 2026 with a contract term between four and six years to be used in Ford commercial vans in Europe.
In addition to the supply deal in Europe, LGES and Ford have also agreed that the batteries for the current Mustang Mach-E will be produced at LG Energy Solution’s plant in Michigan from 2025 and no longer in Poland in order to benefit from tax credits under the Inflation Reduction Act (IRA) in the USA.
“These agreements attest to our experience and expertise in powering commercial vehicles with innovative battery technologies designed to handle extreme user environments,” said David Kim, CEO of LG Energy Solution. “Capitalizing on our local production capacity, we will secure leadership in the European market and deliver unmatched values to our customers through advanced battery technologies that effectively address diverse needs.”
LG ES recently introduced a new battery strategy, announcing that the company would expand its business beyond battery production to the entire value chain, as well as reducing its dependence on the electric vehicle sector. Under the new strategy, LG Energy Solution has also combined financial and strategic goals with the aim of doubling turnover in 2028 compared to 2023. However, the company is still closely cooperating with its partners, such as a new long-term supply deal with Mercedes, which will see a total capacity of 50.5 GWh to be supplied from 2028. The focus for this deal is also in North America, however, “other regions” are also included.
Ford is meanwhile building up production capacities with Ford Otosan in Turkey, where the Transit Custom and Tourneo Custom are currently being manufactured. The US American company is also looking to set up its own battery assembly factory in Romania, and is expanding in Asia with a planned factory in India, for which a Letter of Intent has already been signed.
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