## Ford Teams Up with LG Energy Solution for Electrified Commercial Van Push in Europe
Ford Motor Company (F) is taking a major step toward electrifying its commercial vehicle fleet, announcing a strategic partnership with LG Energy Solution. This alliance will see LG supply a staggering 109 gigawatt-hours (GWh) of batteries for Ford’s electric commercial vans, starting in 2026. The contract is expected to last for four to six years, signaling a long-term commitment to this sustainable transportation initiative.
The deal also includes a significant shift in battery production for the popular Ford Mustang Mach-E. Beginning in 2025, LG will produce batteries for the electric SUV at its Michigan facility instead of Poland. This move is strategically driven by a desire to optimize business efficiency and capitalize on the benefits of the Inflation Reduction Act (IRA) tax credits, which incentivize domestic battery production.
David Kim, CEO of LG Energy Solution, expressed enthusiasm about the collaboration, stating, “These agreements attest to our experience and expertise in powering commercial vehicles with innovative battery technologies designed to handle extreme user environments.” He emphasized their commitment to the European market and providing unmatched value through advanced battery technologies tailored to diverse needs.
This partnership comes as Ford continues to see strong momentum in its electric vehicle sales. The company reported a 12.2% increase in EV sales in the three months ending September 2023, despite a slight dip in Mustang Mach-E SUV sales. This positive trend highlights the growing demand for electrified vehicles and Ford’s commitment to meeting this demand.
For investors interested in gaining exposure to Ford’s electric vehicle journey, ETFs like the First Trust Nasdaq Transportation ETF (FTXR) and the Invesco S&P Ultra Dividend Revenue ETF (RDIV) offer opportunities to track the company’s performance.
Ford’s stock price saw a slight increase in pre-market trading on Tuesday, signaling positive market sentiment surrounding this strategic partnership. The move underscores Ford’s commitment to a sustainable future, focusing on both its commercial and consumer electric vehicle offerings. As the demand for electric vehicles continues to grow, this partnership is poised to play a significant role in shaping the future of both Ford and the electric vehicle landscape.