LG Energy shares slide 6% as Ford scales back EV plans
Shares of LG Energy Solution, one of the world’s largest electric vehicle battery makers, fell 6% on Tuesday after key customer Ford Motor announced it was scaling back its electric vehicle lineup, denting sentiment across South Korea’s battery sector.
LG Energy Solution’s stock slid sharply in early trading after Ford said it would cancel several EV models, signaling a slower-than-expected rollout of electric vehicles amid weakening demand and cost pressures, News.Az reports, citing Reuters.
The sell-off spread across related companies. Samsung SDI, another major South Korean battery producer, dropped 3.5%, while Posco Future M, a key cathode materials supplier, plunged 8.2%, reflecting investor concerns about reduced future orders from global automakers.
Ford’s move highlights broader challenges facing the EV industry, as automakers reassess production plans due to high costs, uneven consumer demand, and infrastructure constraints. Analysts say battery makers, which invested heavily to expand capacity during the EV boom, are now increasingly exposed to shifts in automakers’ strategies.
LG Energy Solution, a major supplier to Ford and other global carmakers, has recently said it is stepping up efforts to protect its intellectual property and diversify its customer base as competition intensifies and growth expectations cool.
The decline underscores growing uncertainty in the EV supply chain, with battery stocks coming under pressure as investors question the pace of the global transition to electric vehicles.
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