LG Energy Solution has signed supply agreements with Ford Motor company to power the electrified models of Ford commercial vans in Europe.

Under the contracts, LG Energy Solution is forecasted to supply a total of 109 GWh of batteries to Ford for its electric commercial vans, starting in 2026 with contract duration ranging from four to six years.

The two companies also agreed that batteries for the current Ford Mustang Mach-E will be produced at LG Energy Solution’s Michigan facility in 2025, instead of Poland, to enhance business efficiency and capitalize on competitive market conditions, such as the IRA tax credits.

“These agreements attest to our experience and expertise in powering commercial vehicles with innovative battery technologies designed to handle extreme user environments,” said David Kim, CEO of LG Energy Solution.

“Capitalizing on our local production capacity, we will secure leadership in the European market and deliver unmatched values to our customers through advanced battery technologies that effectively address diverse needs,” Kim added.