Ford Motor Company (NYSE:F) disclosed that it inked supply agreements with LG Energy Solution to provide power for its electrified commercial van models in Europe.
As per the contract, LG Energy Solution plans to supply Ford with a total of 109 GWh of batteries for its electric commercial vans beginning in 2026. The contract duration ranges from four to six years.
Both companies also agreed to produce batteries for the current Ford Mustang Mach-E at LG Energy Solution's Michigan facility starting in 2025 instead of Poland.
This shift aims to enhance business efficiency and leverage competitive market conditions, including IRA tax credits.
David Kim, CEO of LG Energy Solution, said, "These agreements attest to our experience and expertise in powering commercial vehicles with innovative battery technologies designed to handle extreme user environments,"
"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."
This month, the company stated that it sold 23,509 electric vehicles in the three months through the end of September, marking a jump of 12.2% from the corresponding period last year, despite a sales slump for its Mustang Mach-E SUV.
Investors can gain exposure to the stock via First Trust Nasdaq Transportation ETF (NASDAQ:FTXR) and Invesco Exchange-Traded Fund Trust II Invesco S&P Ultra Dividend Revenue ETF (NYSE:RDIV).
Price Action: Ford shares are up 0.18% at $10.94 premarket at the last check Tuesday.
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