Shares in South Korea’s LGES Drop More Than 7% After Ford Cancels EV Battery Deal

Stocks of LG Energy Solution declined drastically when it reported that Ford had withdrawn an intended arrangement to purchase batteries to power electric vehicles. Due to changes in policy and poor demand, Ford chose to discontinue some of its EV models, which is why the contract was abandoned. Since the deal was supposed to start in 2027, analysts say it will be hard for LG Energy Solution to quickly find replacement orders, which could delay the use of its European plant. The South Korean stock market was also lower at the time.