Korean battery makers are facing possible profit declines as the US cuts EV subsidies and the EU shifts from a planned ban on internal combustion engine vehicles to a 90% reduction target by 2035.

LG Energy Solution said Ford Motor canceled two battery supply deals worth US$6.5 billion, covering 34 GWh from 2026 to 2030, and 75 GWh from 2027 to 2032.

Last week, Ford dissolved its US joint venture with SK On, a Korean battery manufacturer that has supplied batteries for the automaker’s EVs.

The moves follow policy changes in the US, including subsidy cuts for EV purchases, and Ford’s halting of its F-150 Lightning production and development of next-generation electric pickups and vans.

The European Commission’s proposal to reduce its 2035 emissions target, considering the rise of Chinese EVs, is expected to affect Korean firms’ profitability in Europe.

🔗 Source: The Korea Times