Ford Authority

Ford EV Battery Supplier LG Posts Record Profit In Q1

Currently, Ford sources its EV batteries from a variety of suppliers across the globe, and has deals in place to secure both those units – along with the raw materials used in their construction – from an even broader base in the coming years. One of those suppliers is LG Energy Solution, which currently supplies batteries for the Ford Mustang Mach-E and Ford E-Transit, and also recently signed a non-binding Memorandum of Understanding (MOU) with both The Blue Oval and Koc Holding to form a joint venture and create a new commercial EV battery plant near Ankara, Turkey. With FoMoCo working to increase production of both of those aforementioned models and EV sales growing in general, it should come as no surprise that LG posted a record profit in the first quarter of 2023, according to Reuters.

LG more than doubled its quarterly operating profit  in Q1 – 633 billion won ($472.6 million), up 145 percent from 259 billion won ($193.5 USD) in the same period in 2022, while its earnings also met previous forecasts in an impressive start to the year. Additionally, revenue also doubled year-over-year to 8.7 trillion won.

This result was driven largely by not only rapidly growing U.S.-based EV sales, but also subsidies from the U.S. Inflation Reduction Act’s tax credits, helping to drive the company’s share price upward as well.

LG believes that this success will only continue moving forward, for a number of reasons. For starters, around 80 percent of EVs eligible for U.S. tax credits utilize batteries from it and the two other major South Korean battery makers – Samsung and SK On – while lawmakers are seeking to block Chinese companies like CATL from receiving any federal incentives. Additionally, with sales increasing, automakers are seeing to boost their battery supplies, putting them in the perfect position to benefit from these conditions.

We’ll have more on Ford’s suppliers from around the globe soon, so be sure and subscribe to Ford Authority for 24/7 Ford news coverage.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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