Already facing problems in the consumer business LG has been dealt another blow with the Ford Motor Company pulling the plug on an electric vehicle (EV) battery-supply deal worth close to A$10 billion dollars.

Last October, LGES signed two contracts to supply EV batteries to Ford Motor in Europe starting in 2026 and 2027 now and without warning Ford has pulled the plug on LG’s technology which was being supplied by LG Energy Solutions.

In Australia LG Energy Solutions is the same division that the ACCC heavily monitored over dangerous LG solar batteries that in the past had overheated and caught fire, leading to property destruction and injury.

After repeated warnings and proposed recalls, LG provided an enforceable undertaking in May 2024 to boost efforts to find and fix thousands of outstanding faulty batteries (including models from SolaX, Redback, etc. through widespread advertising and remediation, urging owners to switch them off immediately.

Overnight South Korean battery maker said in a regulatory filing that the termination followed a notice from Ford after the automaker decided to halt production of some EV models.

Earlier in the week Ford said it will take a US $19.5 billion writedown and is killing several electric-vehicle models in the most dramatic example yet of the auto industry’s retreat from battery-powered models in response to the Trump administration’s policies and weakening EV demand.

The move is expected to hurt LG Group after the Company chose to invest in B2b and electric vehicle components over consumer where the Company is openly moving to sell direct.