LG Energy Solution Ltd (LGES), a top battery manufacturer in South Korea, announced on Tuesday that it has reached agreements to supply batteries for Ford Motor Company’s commercial vehicles. Under two distinct contracts, LGES will deliver 34 GWh of batteries from 2026 to 2030 and an additional 75 GWh from 2027 to 2032.
The company plans to manufacture these batteries at its facility in Poland, starting in 2026. “The agreements with Ford demonstrate LG Energy Solution’s superior technology and product quality in the all-electric commercial vehicle battery sector,” said Kim Dong-myung, CEO of LGES.
The total value of these contracts is estimated at a minimum of 13 trillion won (approximately $9.5 billion), based on last year’s market prices for battery cells. The European market for commercial electric vehicles is experiencing rapid growth, with projections indicating that half of all commercial vehicles in the region will be battery-powered by 2030, according to global research firm LMC Automotive.
Currently, LGES operates seven battery cell manufacturing plants worldwide, including locations in South Korea, Poland, China, and Indonesia, as well as three in the United States. In a separate initiative, LGES has entered a partnership with Analog Devices, Inc. to enhance its electric vehicle battery management solutions.
This memorandum of understanding (MOU) aims to jointly develop technology for accurately measuring the internal temperatures of EV battery cells. Under the agreement, ADI will provide high-performance battery management integrated circuits (BMICs) for LGES’s battery management system over the next two years.
Despite a current slowdown in electric vehicle demand, LGES acknowledges that the global EV market is in a transitional phase, often referred to as the “chasm,” prior to widespread adoption. The company remains committed to enhancing its competitiveness as a battery supplier for the automotive sector.
