LG Energy Solution drops 6% after Ford cancels several EV models

Shares of LG Energy Solution fell 6% on December 16 after Ford announced it would discontinue several EV models.

LG Energy Solution is a South Korea-based battery maker and a supplier to Ford.

Other South Korean battery sector stocks also dropped, with Samsung SDI down 3.5%, and Posco Future M, a cathode maker, down 8.2%.

Ford said it is pulling back from its EV plans, impacting suppliers in its battery supply chain.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

LG Energy Solution fell 6%. Investors worry about Ford’s EV pullback, though exposure looks limited because LGES powers the Mustang Mach‑E and holds van deals in Europe 1.
LGES signed a 109 GWh supply deal for European electric vans that starts in 2026. The four to six year terms add revenue visibility beyond U.S. consumer demand 1.
Samsung SDI slipped 3.5%. The firm is adding energy storage systems, converting lines to ESS, and won a $1.36 billion ESS order with deliveries from 2027 2 3.
Posco Future M dropped 8.2%. Investors see more risk for cathode suppliers than for cell makers that can lean on ESS growth.

Commercial energy storage integrators (companies that configure batteries, power electronics and software into complete systems) and utility‑scale developers (firms building grid‑connected storage projects) should seek quotes now. Samsung SDI is converting EV lines in the U.S., including Indiana, and LGES plans North American ESS cells in 2025 2 4.
U.S. ESS demand could rise from 59 GWh in 2025 to 142 GWh in 2030. DC‑side prices sat at $75–88 per kilowatt‑hour, and may fall more, opening room for multi‑year deals 5.
Procurement teams at fleet operators (companies managing large vehicle fleets) weighing storage for charging should look at Korean prismatic (rectangular) lithium iron phosphate cells. Samsung SDI is seen as the only non‑Chinese maker of that format in the U.S., which de‑risks supply 2 5.