LG Energy Solution Signs Electric Commercial Vehicle Battery Supply Contract with Ford... Estimated at 13 Trillion KRW

Totaling 109 GWh... Produced at Polish Factory
Seizing the Rapidly Growing European Electric Commercial Vehicle Market

LG Energy Solution will supply large-scale commercial vehicle batteries to Ford, a global leader in the commercial vehicle market.

On the 15th, LG Energy Solution announced that it had signed a long-term supply contract with Ford for a total of 109GWh of electric commercial vehicle battery cells and modules. These products will be entirely produced at the Wrocław plant in Poland.

This supply contract includes the battery supply volume for the Turkey joint venture that both companies pursued last year, as well as newly added orders. The contract consists of two parts: supplying 75GWh over six years from 2027 to 2032, and 34GWh over five years from 2026 to 2030.

This volume is enough to be installed in approximately 1.3 to 1.4 million regular electric vehicles and over 1 million electric commercial vehicles. Although the company did not disclose the contract amount, the industry expects sales of about 13 trillion KRW based on last year’s cell price of $89 per 1KWh, as announced by Bloomberg New Energy Finance (BNEF).

Last year, the two companies initially planned to establish an electric vehicle battery joint venture (JV) in the Ankara region of Turkey, but considering market conditions, they revised the plan to supply volumes from LG Energy Solution’s existing production plants.

LG Energy Solution has once again proven its product competitiveness by successfully securing a large-scale battery supply contract for Ford’s next-generation core commercial vehicle models.

Compared to electric passenger vehicles, electric commercial vehicles require more battery capacity per vehicle and have longer average driving distances. Their model replacement cycles are longer, and they often operate in extreme conditions such as snow and rain. Therefore, customers prefer batteries with relatively higher quality and technology, such as high output and long lifespan, when selecting battery suppliers.

An LG Energy Solution official said, "The electric commercial vehicle market is highly profitable but demands much higher specifications than passenger cars, making it a market that is difficult for the industry to enter lightly. This contract demonstrates that LG Energy Solution’s products possess the performance and quality competitiveness to meet customers’ high requirements."

The European electric commercial vehicle market is growing rapidly. According to global automotive research firm LMC Automotive, the annual growth rate of electric commercial vehicles in Europe is about 36%, and by 2030, the penetration rate of electric vehicles in the European commercial vehicle market is expected to exceed 50%.

Kim Dong-myung, President of LG Energy Solution, stated, "The contract with Ford is a case that proves LG Energy Solution’s high technological competitiveness and innovative product competitiveness in the electric commercial vehicle market. We will actively utilize our solid local production capacity to strengthen our leading position in the European market and introduce products that realize differentiated customer value."

Meanwhile, the two companies have agreed to produce batteries for the Ford Mustang Mach-E, which were previously manufactured at LG Energy Solution’s Poland plant, at LG Energy Solution’s Michigan plant by 2025. Through this, they plan to actively leverage the North American market environment, including tax benefits from the Inflation Reduction Act (IRA), to enhance business efficiency.