EV Battery | LG Energy Solution to Provide Batteries for Ford Commercial Vans in Europe

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EV Battery | LG Energy Solution to Provide Batteries for Ford Commercial Vans in Europe

Date：2024-10-16

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Keyword tags： Lithium-ion Battery EV EU

LG Energy Solution (LGES) announced October 15, 2024 that it has signed supply agreements with Ford Motor Company to supply battery modules for Ford's commercial vans in the UK and EU markets from its Poland facility.

Under the contracts, LGES is projected to provide a total of 109 GWh of batteries to Ford’s electric commercial vans, with the battery supply commencing in 2026 and spanning a period of four to six years.

The two companies have also agreed that, to enhance business efficiency and leverage competitive market conditions such as the IRA tax credits in the United States, the batteries for the current Ford Mustang Mach-E will be produced at LGES's Michigan facility beginning in 2025, rather than in Poland.

“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 LGES. “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.”

LGES just announced a multi-billion dollar long-term battery supply deal with luxury carmaker Mercedes-Benz last week, where LGES will supply 50.5 GWh of 46 series large cylindrical batteries for Mercedes-Benz's electric vehicles in North America and other markets from January 2028 to December 2038. LGES has also unveiled its new mid-to-long-term battery strategy recently, to double the company's revenue in 2028 based on the 33.7 trillion won (approximately 176 billion yuan) in 2023, via a package of measures including expansion to non-EV businesses, diversifying EV products and customers, generating revenue from software and service businesses, and consitant to innovation in next-generation battery technologies etc.

Ford is currently manufacturing Transit Custom and Tourneo Custom commercial vans at the Ford Otosan facility in Yeniköy, Kocaeli, Turkey. Since 2022, Ford has been producing electric vans, the E-Transit, for the European market at its Kocaeli plant and plans to start producing electric versions of the E-Transit Custom and E-Tourneo Custom from 2024. The company also intends to manufacture the all-electric compact Puma SUV and the all-electric light commercial Transit Courier in Craiova, Romania, in 2024.

The E-Transit is one of the best-selling electric vans in the U.S. according to Ford's recently revised electrification strategy, Ford will concentrate on competitive commercial vans, mid and large pickups, and long-range SUV segments for its next generation of electrified and digital vehicles.

Except for LGES, SK On is also a close battery supplier for Ford. In the US.S, Ford's electric commercial vehicles will be supplied batteries by SK On. The upgraded E-Transit, including the extended-range version, will be powered by batteries from the Ford-SK On joint venture BlueOval SK Plant 1 in Kentucky starting from mid-2025, with another new electric commercial vehicle receiving batteries from BlueOval SK Tennessee battery plant from the end of 2025.

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