Total of 109GWh in size… Produced in Polish factory
Leading the rapidly growing European commercial electric vehicle market, ‘LG Energy Solution has signed a large-scale supply contract with Ford, considered a powerhouse in the global commercial vehicle market.’,
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, ‘On the 15th, LG Energy Solution announced that it has signed a long-term supply contract with Ford for a total of 109GWh of electric commercial vehicle battery cells and modules. The products will be produced entirely at the Brochow plant in Poland.’,
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, ‘This supply contract includes the volume of batteries supplied by the joint venture in Turkey that both companies pursued last year, as well as additional new orders. There are a total of two contracts, supplying 75GWh over 6 years from 2027 to 2032, and 34GWh over 5 years from 2026 to 2030.’,
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, ‘This amount is sufficient to equip approximately 1.3 to 1.4 million conventional electric vehicles and more than 1 million electric commercial vehicles. Although the contract amount was not disclosed, based on Bloomberg New Energy Finance (BNEF) data from last year showing a cell price of $89 per 1KWh, it is estimated that this contract could generate revenue of around 13 trillion won based on cell standards.’,
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, ‘Although the two companies had planned to establish a joint venture for electric vehicle battery production in Ankara, Turkey last year, they revised the plan to supply the volume from LG Energy Solutions’ existing production facilities considering market conditions.’,
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, ‘By successfully securing a large battery supply contract for Ford’s next-generation core commercial vehicle models, LG Energy Solution once again demonstrated its product competitiveness.’,
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, ‘Commercial electric vehicles have higher battery capacities per vehicle compared to electric cars, longer average travel distances, and longer replacement cycles. Customers prefer batteries with high output, durability, and relative high quality and technological capabilities when choosing their battery suppliers.’,
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, ‘An official from LG Energy Solution said, “The commercial electric vehicle market demands much higher specifications than passenger cars, making it difficult for the industry to enter rashly,” and stated, “This contract demonstrates that LG Energy Solution’s products have the performance and quality competitiveness to meet customers’ high requirements.”‘,
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, ‘The European commercial electric vehicle market is growing rapidly. According to LMC Automotive, a global automotive research firm, the annual growth rate of commercial electric vehicles in Europe is approximately 36%, with an expected penetration rate of over 50% in the European commercial vehicle market by 2030.’,
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, ‘Kim Dong-myung, the CEO of LG Energy Solution, stated, “The contract with Ford is a case that proves LG Energy Solution’s high technological competitiveness and innovative product competitiveness in the commercial electric vehicle market,” and said, “By actively utilizing solid local production capabilities, we will establish a leading position in the European market and deliver differentiated customer value through products.”‘,
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, ‘Meanwhile, the two companies have agreed to produce batteries for the Ford Mustang Mach-E in 2025 at LG Energy Solution’s Michigan plant, which were previously produced at the LG Energy Solution plant in Poland. Through this, they plan to enhance business efficiency by actively utilizing North American market conditions such as the Inflation Reduction Act (IRA) tax benefits.’,
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