LG Energy Solution cancels 3.9 trillion won battery order with Freudenberg
Battery cells with the logo of LG Energy Solution are displayed at the company headquarters in Seoul, South Korea, April 23, 2024. REUTERS/Kim Hong-Ji
SEOUL, Dec 26 : South Korean battery maker LG Energy Solution (LGES) has cancelled a 3.9 trillion won ($2.7 billion) contract with Freudenberg Battery Power Systems, the company said in a regulatory filing on Friday.
LG Energy Solution said it has mutually agreed with Freudenberg Battery Power Systems to terminate after Freudenberg scrapped plans for its battery business.
The announcement comes a week after LGES lost another contract, when it said Ford Motor terminated an EV battery supply deal worth about 9.6 trillion won.
Ford said it would take a $19.5 billion writedown and scrap several electric-vehicle models, a dramatic example of the auto industry's retreat from battery-powered models in response to the Trump administration's policies and weakening EV demand.
The contract termination means LGES will lose about 13.5 trillion won in expected revenue in less than 10 days, including from Ford, more than half of its 25.62 trillion won in revenue last year.
LGES on Wednesday said it is selling a factory building and assets in the U.S. state of Ohio to Honda Development and Manufacturing of America for $2.86 billion to improve joint venture operational efficiency.
