LG To Supply Ford With Batteries For Its Commercial Vehicles

With electric vehicle demand not quite growing at the same rapid pace that it once was, automakers including Ford have scaled back their planned investments and production plans revolving around EVs, too. One such change occurred last November, when Ford nixed its plans to form a joint-venture with Koc Holding and LG Energy Solutions that was set to erect a new commercial EV battery plant near Ankara, Turkey. However, two of those entities still plan to work together on another venture, it seems.

LG Energy has announced that it has signed a supply agreement with Ford that will lead to its batteries being used in electrified Blue Oval commercial vans in Europe.  LG expects to supply Ford with 109 GWh of batteries for those models starting in 2026, with the duration of the contract lasting around four to six years. This is just the latest partnership between the two companies, however, as LG and FoMoCo recently reached another agreement that will result in the former supplying the latter with battery packs for the extended range Ford Mustang Mach-E from its Michigan-based plant – not Poland, as was previously the case. Such a move will make those Mach-E models eligible for the federal clean energy tax credit.

This announcement confirms that LG will indeed move its Mach-E battery production from Poland to Michigan, which is a big deal given the fact that extended range models aren’t currently eligible for the federal clean energy tax credit due to sourcing requirements. At the beginning of this year, several Blue Oval models lost their eligibility as well, which makes them a bit more expensive for customers that qualify for the credit.

“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.”