LG Energy Solution to Power Electric Versions of Ford’s Commercial Vans in Europe

David Kim, CEO of LG Energy Solution. (Photo: LG Energy Solution)

LG Energy Solution announced on Oct. 15 it signed supply agreements with Ford Motor Company to power the electrified models of Ford’s commercial vans in Europe.

Under the contracts, LG Energy Solution is forecasted to supply a total of 109 GWh of batteries to Ford for its electric commercial vans, starting in 2026 with contract durations ranging from four to six years.

The two companies also agreed that batteries for the current Ford Mustang Mach-E will be produced at LG Energy Solution’s Michigan facility in 2025, instead of Poland, to enhance business efficiency and capitalize on competitive market conditions, such as the IRA tax credits.

“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 Energy Solution posts 6.8778 Trillion Won in Revenue in Q3

LG Energy Solution on Oct. 28 announced its third quarter earnings, along with its quarterly progress reports and action plans for EV and energy storage system (ESS) battery businesses.

The company posted consolidated revenue of 6.8778 trillion won, a 11.6 percent increase quarter-on-quarter and 16.4 percent decrease year-on-year.

The operating profit was 448.3 billion won, a 129.5 percent increase quarter-on-quarter and 38.7 percent decrease year-on-year.

The operating profit includes the estimated IRA tax credit amount of 466 billion won. Excluding the IRA tax credit, the company would have recorded quarterly operating loss of 17.7 billion won.

“Expanded sales to major European automakers and increased production at our joint venture facilities in North America and Indonesia, as well as substantial ESS revenue growth from grid-scale projects, improved the overall revenue compared to the previous quarter,” said Chang Sil Lee, CFO of LG Energy Solution.

“We also saw quarter-on-quarter improvements in the operating profit excluding IRA tax credit effect on the back of improved utilization rate led by shipment increase in both EV and ESS batteries, as well as reduced unit cost burden in line with metal price stabilization,” Lee said.

Large-Scale Supply Agreements for New Form Factors and Chemistries

LG Energy Solution successfully secured large-scale orders from top global automakers for its new form factors and chemistries totaling 160GWh, further advancing its goal of leading global innovation in EV batteries.

The major supply agreements include a contract for 50GWh of cylindrical batteries with a major automaker to power EVs sold in North America. With the deal, the company has expanded its customer portfolio for cylindrical EV batteries from primarily EV start-ups to established automakers, and secured stronger market presence in North America through local production capability.

For pouch-type NCM EV batteries, LG Energy Solution secured supply agreements totaling 109GWh for commercial vehicles sold in Europe, leveraging the chemistry’s technological competitiveness characterized by high-power and long-life cycle.

These agreements are also expected to contribute to improving the Poland facility’s production efficiency once the production starts after the second half of 2026.

Action Plans for EV and ESS Battery Businesses

For the EV battery business, as customers are increasingly interested in applying more diversified battery chemistries and form factors tailored to different EV segment, LG Energy Solution will offer various chemistry choices to customers, such as LFP and High Voltage Mid-Ni to support all EV segments.

On the same note, the company will further diversify its product form factors by starting mass production of its 46-Series cylindrical batteries.

To address increasing needs of cost innovation for core EV components, the company will continue to advance its materials and process technologies.

For battery materials, it will apply industry-leading material technologies such as single crystal cathode and silicon contents in anode.

Also, it will focus on developing dry electrode technology to achieve higher energy density and cost innovation, with the goal of applying it to mass production in 2028.