Ford Backs Out of Massive Battery Deals

Earlier this week, Ford scrapped the fully-electric F-150 Lightning and pivoted distant from assertive EV plans aft losing $13 cardinal connected the class since 2023.

As user request wanes and the institution plans to instrumentality different $19.5 cardinal deed successful Q4, Ford is shifting gears toward extended-range gas-powered vehicles and hybrids.

Most Read connected IEN:

• WATCH: Rare Corvette Engine Resurfaces successful Original Packaging

• WATCH: Jaguar Fires Design Chief Behind Rebrand

• Airbus Moving Production Out of U.S. Following Acquisition

• Milk Recalled Over Potential Contamination with ‘Cleaning Agents’

The ripple effects passim the proviso concatenation volition beryllium far-reaching, including its $6.5 cardinal woody with LG Energy Solutions to marque immoderate 500,000 batteries per year. According to caller regulatory filings, that woody has been scrapped.

In precocious 2024, Ford contracted LG to marque batteries for astir 2.5 cardinal Ford EVs from 2026 done 2030. LG was besides going to proviso batteries for Ford's commercialized conveyance portfolio.

In LG's regulatory filing, Carscoops reported that the institution said Ford's determination was the effect of "recent argumentation changes and shifts successful EV request forecasts."

When the national EV taxation recognition ended and the existent medication eased substance system regulations connected gas-powered cars, the bottommost fell retired of the EV market, and automakers are making swift changes.

A erstwhile study connected Carscoops says the quality comes little than a week aft reports that Ford backed out of a monolithic associated task with South Korean artillery shaper SK On to physique aggregate EV artillery factories crossed the U.S.

In the divorce, SK On gets the BlueOval, the associated venture’s mill successful Tennessee, and Ford volition instrumentality implicit 2 factories successful Kentucky.

SK On formally ended the partnership, though it inactive expects to bash concern with Ford astatine the Tennessee plant.

The associated task with SK was scheduled to person a authorities indebtedness valued astatine immoderate $9.6 billion, but that woody volition beryllium restructured.

Next, Ford plans to rename and retool its Tennessee Electric Vehicle Center. The Tennessee Truck Plant volition present marque lower-priced gas-powered trucks.

Click here to subscribe to our regular newsletter featuring breaking manufacturing manufacture news.