Image: LG Energy Solution
LG Energy Solution has confirmed its commitment to supply battery modules produced at its Polish facility for Ford’s electric commercial vehicles across Europe. Furthermore, the company plans to increase its manufacturing operations in the United States to leverage tax incentives provided by the IRA.
This battery supply agreement encompasses a total of 109 GWh of batteries starting in 2026, with the contract expected to last between four and six years, specifically for Ford’s commercial vans in Europe.
Additionally, LGES and Ford have reached an agreement to shift the production of batteries for the current Mustang Mach-E to LG Energy Solution’s Michigan plant beginning in 2025, moving away from Poland to capitalize on tax credits under the Inflation Reduction Act in the U.S.
“These partnerships highlight our proficiency in providing innovative battery technologies tailored for commercial vehicles operating in demanding environments,” stated David Kim, CEO of LG Energy Solution. “By leveraging our local production capabilities, we aim to lead the European market and offer exceptional value to our clients through advanced battery solutions that meet varied requirements.”
Recently, LGES unveiled a new strategic direction, indicating its intention to broaden its operations beyond just battery manufacturing to encompass the entire value chain, thereby decreasing its reliance on the electric vehicle market. As part of this strategy, LG Energy Solution aims to double its revenue by 2028 compared to 2023. Nevertheless, the company continues to collaborate closely with partners, including a new long-term agreement with Mercedes that will deliver a total capacity of 50.5 GWh starting in 2028, with a focus on North America and other regions.
Meanwhile, Ford is enhancing its production capabilities through Ford Otosan in Turkey, where the Transit Custom and Tourneo Custom are being produced. The American automaker is also planning to establish its own battery assembly plant in Romania and is expanding into Asia with a proposed factory in India, for which a Letter of Intent has already been signed.
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