Ford shook up the US auto industry this week by scaling back its electric vehicle ambitions and pivoting more toward its core gas truck business.
Now the implications are being felt beyond US borders. The Dearborn automaker has canceled billions of dollars’ worth of battery orders from South Korea’s LG Energy Solution (LGES) and SK On. All of this now threatens thousands of jobs and could leave a lasting mark on the battery industry.
Welcome back to Critical materialsYour daily report on everything related to electricity and technology in the field of cars.
Also on our list today: Sixteen states have sued the Trump administration for the second time this year over a freeze on electric vehicle charging funds. The state of Colorado has granted Scout Motors a license to sell directly to customers, allowing it to bypass the traditional sales model.
30%: Ford cancels a $6.5 billion battery order from LG
LG Energy Solution Batteries: Cylindrical battery cell
It takes years for automakers and battery suppliers to design, develop and scale high-voltage battery packs for specific models of electric vehicles. This long lead time is why automakers have to secure battery supplies in advance for vehicles that are still years away from production.
That’s one reason why Ford’s electric vehicle maker’s decline this week seems particularly painful for the battery industry, especially for its Korean partners, which were already preparing to supply the American automaker with billions of dollars’ worth of battery packs.
In a regulatory filing cited by Correa Yonhap News AgencyHere’s what LGES had to say about the battery order cancellation:
“This matter relates to the counterparty’s decision to cease production of certain electric vehicle (EV) models due to recent policy changes and shifts in demand forecasts for electric vehicles, and subsequent notice of termination of the contract.”
The agreement is worth $6.5 billion It was signed in October 2024would have seen LGES supply 34 gigawatt-hours of batteries to Ford between 2026 and 2030. That’s enough capacity to power just under half a million electric vehicles per year, assuming an average package size of 75 kilowatt-hours, quantities Ford no longer believes it needs for full-size electric trucks.
Furthermore, LGES has also committed to supply another 75 GWh of batteries from 2027 to 2032 for Ford’s commercial vehicle range. These packages were to be manufactured at LG Energy Solution’s factory in Poland and used in electric commercial vehicles destined for Europe.
This shift comes after Ford decided to do so Production of the current F-150 Lightning effectively ends this weekwhich has topped the electric truck sales charts but has not achieved significant volume or profitability over three years. This is especially because the Trump administration eliminated the $7,500 federal tax credit for electric vehicles and relaxed fuel economy rules. Ford has also shelved the next-generation all-electric Lightning, internally codenamed Project T3, along with the next-generation electric commercial truck.
Instead, the company is redirecting capital and engineering resources back toward gas-powered trucks while manufacturing smaller, more affordable electric vehicles. Built on the upcoming Universal EV Platform for its EV strategy.
And the shaking doesn’t stop there. Ford’s $11.4 billion battery joint venture with SK On also ended this week. The separation led to the layoff of 1,600 workers at the battery plant in Glendale, Kentucky, which was jointly operated under the now-defunct partnership.
Under the new arrangement, Ford will assume full control of the Kentucky facility, while SK On will assume ownership of the battery plant in Tennessee. The two companies plan to move into stationary energy storage systems (ESS), a fast-growing business driven by growing demand from the artificial intelligence and renewable energy sectors.
60%: States are suing the Trump administration again over frozen EV charger funds
Photo by: Electrifying America
A coalition of 17 attorneys general, representing 16 states and the District of Columbia, filed a second lawsuit this year against the Trump administration, alleging it illegally withheld federal funds aimed at expanding the nation’s electric vehicle charging network.
The lawsuit, led by California Attorney General Rob Bonta, alleges that the US Department of Transportation is withholding funds already approved by Congress for electric vehicle charging projects. As a result, billions of dollars promised to states and cities remain tied up, putting planned infrastructure projects on hold.
Here’s what Bonta said in a press release:
“The Trump administration’s illegal attempt to defund electric vehicle infrastructure must end. This is just another reckless attempt that will hamper the fight against air pollution and climate change, slow innovation, thwart green job creation, and leave communities without access to clean, affordable transportation. While the administration is busy finding ways to enable big oil donors to profit, California will continue to fight for its people, its environment, and its innovation.”
The states say the crux of the case is a constitutional dispute over spending authority. By blocking the release of these funds without providing a clear explanation, they argue the administration is violating Congress’ “power of the purse.” Legally, the practice is known as “sequestration,” which means refusing to spend money that Congress has already approved, which states say is not allowed.
90%: Scout Motors can sell directly to customers in Colorado
Photography: Scout Motors
Volkswagen Group-backed Scout Motors will be allowed to sell its upcoming electric vehicles and long-range hybrid vehicles directly to customers in Colorado, bypassing the traditional sales model, as electric car makers Tesla, Lucid and Rivian have done for years.
Here’s more Car News:
The Colorado Automobile Dealers Council voted 6-2 on Dec. 16 to approve Scout’s application to become a dealer in the state, according to a spokesman for the Colorado Department of Revenue’s Specialty Business Group, which includes the board.
Scout’s detailed roadmap for selling electric SUVs and pickup trucks to U.S. consumers includes experience centers, walk-in transactions and stores in key U.S. markets and a flexible nationwide service footprint at launch.
Bypassing the dealership gives automakers more control over how cars are sold and priced. It also helps eliminate surprise markups, something American dealers are particularly known for when popular models are in high demand.
Dealers are likely to appeal the ruling, but the decision could still set a meaningful precedent for Scout, and potentially even prompt other states to follow Colorado’s lead and make it easier for Scout to roll out its own showrooms nationwide, the report said.
100%: How can electric vehicle charging projects be protected from politics?
BMW iX at Ionna Rechargery
Photography: Suvrat Kothari
What happens to electric vehicle adoption if charging projects remain stuck in political limbo? Should future financing of electric vehicles come with stronger guardrails so they can’t be paused so easily? Leave your thoughts in the comments.
Do you have any advice? Contact the author: suvrat.kothari@insideevs.com
