The companies aim to cash in on competitive market conditions and take advantage of US incentives.
The agreement doesn't stop at the Mach-E. LG will keep supplying Ford with batteries for electric commercial vans in Europe. They'll ramp up production to 109 GWh by 2026.
“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.”
The move follows a trend in the auto industry. Many carmakers are teaming up to build American battery supply chains. They're doing this to qualify for the New Clean Vehicle Tax Credit, which offers up to $7,500 off EVs and PHEVs.
LG Energy isn't stopping there. They're pouring $3 billion into their Michigan battery facility. The company has also teamed up with Toyota to supply lithium for batteries in future US-built EVs.
Ford's keeping busy too. They've partnered with SK On to build batteries in Kentucky. These will power the updated E-Transit commercial van and F-150 Lightning electric pickup starting in mid-2025.
Source: LG