Battery firms see possible declines over shifting global EV policies

The Korean battery industry is feeling tangible impacts from the reversal of electric vehicle (EV) policies in the United States and the European Union’s withdrawal of its plan to ban the sale of internal combustion engine vehicles starting in 2035. As global carmakers retreat from EVs in line with those shifts, concerns are growing over a potential decline in profits for Korean battery companies. LG Energy Solution (LGES) said Wednesday that Ford Motor canceled a $6.5 billion contract signed last year for the supply of 34 gigawatt-hours (GWh) of batteries from 2026 to 2030 and another 75 GWh from 2027 to 2032. Last week, Ford decided to dissolve a U.S. joint venture with another Korean battery maker, SK On, which has served as one of the main suppliers for its EVs. The decisions came after U.S. President Donald Trump cut subsidies for EV purchases. The U.S. carmaker has already halted production of the F-150 Lightning electric pickup and development of next-generation all-electric pickups and commercial vans. “This issue stems from our partner’s decision to discontinue certain EV m